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Diversity and the Effective Corporate Board by Shital Jhunjhunwala, Ram Kumar Mishra

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Chapter 9

Building an Effective Board

Successful boards are those that choose the right combination of heterogeneous directors and, by correctly managing the complexities of diversity, leverage those differences to their advantage.

9.1 Value-Adding Boards

A board may prove to be one of the following: a board that creates negative value (deteriorates the company from its earlier position); a board that creates no value (ensures compliance and maintains the status quo); or a board that creates value (through vision and strategic guidance). Every board desires and strives to be a “value creator.” They all want to live up to the expectations ...

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