The article cites examples from NASA (HST), Volkswagen and Wirecard to show how boards may miss data room benefits early warning signs that lead to a hazard. It emphasizes the importance of not only identifying these signals but also to act on these signals. This can be done through an effective review process for boards that helps them assess their effectiveness and performance.
The authors emphasize the need for boards to evaluate their own performance as well as the performance of the of the organization, to find gaps and opportunities for improvement. They also stress the importance of using outside experts with expertise to ensure that the board agenda is comprehensive.
A board room review is a procedure that evaluates the effectiveness of the board of directors in relation to the requirements of the business. It could be an annual internal review that uses a cheap world class benchmarked survey tool like those from Board Surveys or a more unique external evaluation that is customized to the requirements of the business.
It is essential that the boardroom be an area where people can talk openly and honestly. They should be able to concentrate on their task without being distracted or interrupted, and they should feel comfortable discussing sensitive issues. A conference room equipped with large trestle tables and chairs, a soundproofed environment that keeps conversations private, and modern technology like Bloomberg plug-ins or cutting-edge quotation systems can aid. A virtual meeting room could also allow members to attend meetings at their offices, homes or even airplanes, helping to facilitate the process for them and their colleagues.