How Boards Work: And How They Can Work Better in a Chaotic World

by Dambisa Moyo

Overview

A New York Times bestselling author and veteran board member offers an insider's view of corporate boards, their struggles, and why they must adapt to survive.

Corporate boards are under great pressure. Scandals and malpractice at companies like Theranos, WeWork, Uber, and Wells Fargo have raised justified questions among regulators, shareholders, and the public about the quality of corporate governance. In How Boards Work, prizewinning economist and veteran board director Dambisa Moyo offers an insider's view of corporate boards as they are buffeted by the turbulence of our times.

Moyo argues that corporations need boards that are more transparent, more knowledgeable, more diverse, and more deeply involved in setting the strategic course of the companies they lead. How Boards Work offers a road map for how boards can steer companies through tomorrow's challenges and ensure they thrive to benefit their employees, shareholders, and society at large.

Product Details

ISBN-13:	9781541619425
Publisher:	Basic Books
Publication date:	05/04/2021
Pages:	304
Sales rank:	672,070
Product dimensions:	6.10(w) x 9.30(h) x 1.10(d)

About the Author

Dambisa Moyo is a prizewinning author of the New York Times bestsellers Edge of Chaos, Winner Take All, and Dead Aid, and she was named one of the "100 Most Influential People in the World" by Time magazine. Moyo regularly contributes to the Wall Street Journal and Financial Times. She lives in New York City and London.

Table of Contents

Preface ix

Introduction 1

Chapter 1 Setting the Company Strategy 17

Chapter 2 Hiring (and Firing) the CEO-and the Board 61

Chapter 3 A Culture Revolution Enters the Boardroom 117

Chapter 4 Five Critical Issues No Board Should Ignore 167

Chapter 5 Innovate or Die: The Existential Crisis of the Twenty-First-Century Board 215

Acknowledgments 229

Bibliography 231

Index 269

Editorial Reviews

"Highly instructive for aspiring non-executives…provides thoughtful analysis and reform.”—Financial Times

“How Boards Work is a detailed explainer of how corporate boards at listed companies operate, describing how often they meet and how chief executives are selected.”
 —Reuters

“A highly useful primer for investors and board members alike.”—Kirkus

“How Boards Work offers a thorough and nuanced take on the ever-evolving role of corporate boards today. Moyo provides a candid assessment of the challenges and opportunities that directors face and wisely warns of the dangers of stasis. The book is not only a must-read for the most tenured and experienced board members, but it also provides critical context to those who one day hope to have a seat at the table.”—Mellody Hobson, co-CEO, Ariel Investments; chair of the board of directors, Starbucks; board member, JP Morgan; former board chair, Dreamworks; and former board member, Estée Lauder

“Boards have incredible power to impact how companies and their stakeholders meet the challenges of the modern age. But boards are complex and living organisms that require more than just getting smart people in a room. Dambisa Moyo’s book, informed by real-world experience in negotiating complex situations, should be a must-read for any board that wants to excel and have an impact today.”—Dan Loeb, founder and CEO, Thirdpoint, and former board member, Sotheby's

“How Boards Work is exactly what any prospective—or sitting—board member needs to understand the true rigors and realities of board life. Having seen it all, Moyo offers valuable guidance on how boards can best focus their time and energy while grappling with social, governance, and environmental issues."—Arianna Huffington, founder and CEO, Thrive Global, and former board member, Uber

“Drawing on her direct involvements on several boards of companies facing difficult decisions, as well as her global economic expertise, Moyo has written an indispensable guide to how boards function, malfunction, and, most importantly, should operate better.”—Mohamed A. El-Erian, president of Queens’ College, Cambridge University; board member, Under Armour; and author of The Only Game in Town and When Markets Collide

From the Publisher

2021-03-10
Economist Moyo, who serves on numerous corporate boards, explains their inner workings in admirably clear language.

“Strong and successful corporations are in the best interest of society. Indeed, the centrality of corporations to human progress cannot be overstated.” So writes Moyo, gainsaying those who argue that corporations are evil, outmoded, or both. As a board member, the author writes that she has seen numerous failures short of bankruptcy and just as many successes, even in difficult times. Agreeing that corporate boards need more diverse membership while arguing against quota appointments, Moyo holds that boards have an overarching function that is often ignored: While a CEO is in charge of daily operations, a board of directors and its various committees are collectively responsible for setting and maintaining long-term goals and visions, with “an important and central role to play in navigating global disruption.” The author is at her best when she focuses on that disruption and its many sources—e.g., competition from China, the imposition of trade barriers and other protectionist measures, the fallout from Brexit, Covid-19, the ascent of social media. For all that, she also notes that boards must fight the temptation to micromanage and to enter the realm of short-term thinking rather than long-term strategic decision-making. Boards must also become more aware of the life cycle of a business. Corporations typically last as long as mortgages do these days, not centuries as in the days of old, and even Jeff Bezos has predicted that Amazon and other large companies of today will be gone in 30 years. Finally, Moyo notes, corporate boards are increasingly called on to safeguard values, enforce ethics, and address social concerns such as gun control, data privacy, and mental health. “Society is holding companies to account precisely because these issues are important and not going away,” she writes. “In fact, the emphasis is likely only to increase.”

A highly useful primer for investors and board members alike.

Kirkus Reviews