The article cites instances from NASA (HST), Volkswagen and Wirecard to show how boards are prone to miss early warning signs that can lead to a hazard. It emphasizes the importance of not just being able to recognize these signals, but also to act upon them. This can be done by using a an effective board review process board room review that assists boards evaluate their own performance and effectiveness.
The authors emphasize the need for boards to examine their own performance and the performance of the rest of the organization, in order to identify any gaps and opportunities to improve. In addition, they emphasise the importance of leveraging the expertise of outside consultants to ensure that the board's agenda is complete.
A board room review is a re-evaluation of the effectiveness of the board of directors when compared to the ideal needs of the business. It could be an annual internal review using a low-cost world class benchmarked survey tool like those from Board Surveys or a more unique external evaluation that is tailored to the requirements of the company.
It is crucial that the boardroom be a place where members can communicate freely and honestly. They must be able to focus on the task at hand without being interrupted or distracted, and they must feel at ease when discussing sensitive issues. A conference room equipped with large trestle tables and chairs, a soundproof environment to ensure that conversations remain private and a high-tech equipment like Bloomberg plug-ins or state-of-the-art quotation systems can be helpful. A virtual meeting room can also permit members to attend meetings from their homes, offices or even on planes, helping to facilitate the process for them and their colleagues.