I’ve sat on many boards over the past two decades and seen my share of high-functioning boards and low-functioning boards. Here are some observations I have from this exposure:
If a company moves from strength-to-strength with predictable outcomes, easy financings, low staff turn-over, and limited competitive threats, then the composition of the board probably doesn’t matter as much. Even the best companies with the best outcomes, however, usually hit some difficult moments where a highly-functioning board matters.
In the best cases, boards come together to help the company get through its trough – in the worst cases, infighting can mean an otherwise great potential business is hampered with misaligned incentives and drama.
Dispatches From The Front 