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Boards That Lead: When to Take Charge, When to Partner, and When to Stay Out of the Way Hardcover – December 10, 2013

4.4 4.4 out of 5 stars 162 ratings

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Is your firm’s board creating value—or destroying it?

Change is coming. Leadership at the top is being redefined as boards take a more active role in decisions that once belonged solely to the CEO. But for all the advantages of increased board engagement, it can create debilitating questions of authority and dangerous meddling in day-to-day operations. Directors need a new road map—for when to lead, when to partner, and when to stay out of the way.

Boardroom veterans Ram Charan, Dennis Carey, and Michael Useem advocate this new governance model—a sharp departure from what has been demanded by governance activists, raters, and regulators—and reveal the emerging practices that are defining shared leadership of directors and executives. Based on personal interviews and the authors’ broad and deep experience working with executives and directors from dozens of the world’s largest firms, including Apple, Boeing, Ford, Infosys, and Lenovo,
Boards That Lead tells the inside story behind the successes and pitfalls of this new leadership model and explains how to:

• Define the central idea of the company
• Ensure that the right CEO is in place and potential successors are identified
• Recruit directors who add value
• Root out board dysfunction
• Select a board leader who deftly bridges the divide between management and the board
• Set a high bar on ethics and risk

With a total of eighteen checklists that will transform board directors from monitors to leaders, Charan, Carey, and Useem provide a smart and practical guide for businesspeople everywhere—whether they occupy the boardroom or the C-suite.

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Customer reviews

4.4 out of 5 stars
162 global ratings

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Customers say

Customers find the book an excellent resource for directors. They find it clear and easy to read, with practical applications grounded in sound research. The book provides theoretical underpinnings of cutting-edge governance principles and helps boards evaluate and improve their governance. Readers appreciate the current anecdotal stories and real-life examples.

AI-generated from the text of customer reviews

19 customers mention "Book value"19 positive0 negative

Customers find the book an excellent resource for directors. It focuses on board competence, effectiveness, and composition. The authors do a fantastic job of outlining practical applications grounded in sound research. They provide valuable insights on topics like spotting, catching, or exiting a failing CEO. Readers appreciate the superb checklists and guides provided for boards. Overall, they find the book to be a delightful blend of the practical and exemplary.

"...The book focus on board competence, board effectiveness, board composition, board evaluation and board recruitment as the critical elements of..." Read more

"...But where, when, and how? Rich with many examples, stories, and detailed checklists, "Boards That Lead" provides the answers...." Read more

"...a 219-page poke-in-the-ribs, plus an incredible 40-page section with 18 checklists for board members, a bonus chapter on “Trends in Director..." Read more

"...Clearly written, excellent information and ideas, things that I found useful and applicable – which you don't always find in every business book...." Read more

8 customers mention "Readability"8 positive0 negative

Customers find the book easy to read and engaging. They say it's a must-read for directors and board members. The book provides excellent information and ideas, and includes a director evaluation worksheet.

"...chapter on “Trends in Director Monitoring and Leading,” a director evaluation worksheet, and six golden pages on “Division of Responsibilities..." Read more

"...Clearly written, excellent information and ideas, things that I found useful and applicable – which you don't always find in every business book...." Read more

"Well written in a typical Ram Charan style. I enjoyed reading it, and picked critical lessons as a board member...." Read more

"One of my best books. I can read it several times. Excellent insights for real leaders. Great job and Thank you for sharing your experience with us." Read more

7 customers mention "Governance"7 positive0 negative

Customers find the book provides sound research and theoretical underpinnings of cutting-edge governance principles. They say it's practical, clear, and logical. The book includes case studies, the stakeholder model, and the importance of culture, including ethics and integrity. It also offers checklists and guides for boards to evaluate and improve their governance.

"...is light on the multi-stakerholder model, the importance of culture including ethics and integrity, and how to break the cycles of short-termism and..." Read more

"...can make up for the wrong choice of CEO. • Ten principles for finding the right CEO..." Read more

"...some superb checklists and guides for board to evaluate and improve their governance. A well balanced and practical book for every board." Read more

"...The case studies (entertaining and often based on the authors' first hand experiences) provide valuable insights on topics such as "spotting,..." Read more

3 customers mention "Board effectiveness"3 positive0 negative

Customers like the book's focus on board effectiveness. They mention it has good application to board functions in general, board room dynamics, and how to make corporate boards effective. The book explains that boards lead certain functions and partner on others.

"...The book focus on board competence, board effectiveness, board composition, board evaluation and board recruitment as the critical elements of..." Read more

"...This book contributes to breaking that mindset. Boards lead certain functions, partner on others, and need to stay out of the "no-fly zones"..." Read more

"...apply to the non-profit setting, they still had good application to board functions in general...." Read more

3 customers mention "Story quality"3 positive0 negative

Customers appreciate the book's stories. They find the anecdotal examples helpful and logical, with recent real-life examples.

"...But where, when, and how? Rich with many examples, stories, and detailed checklists, "Boards That Lead" provides the answers...." Read more

"Best board book I have read. Very current. Anecdotal stories were well done and most helpful...." Read more

"Concise, facts based, clear, pragmatic and logical... with recent real life examples.... must buy and MUST READ for any board member or top executive..." Read more

Good coverage of how boards are changing
4 out of 5 stars
Good coverage of how boards are changing
Published in 2014 by Harvard Business School, this is an ambitious book. The scope is mostly S&P 500, large publicly listed companies in the United States. A good effort has been made to make connections/draw lessons from international companies as well (Asia, South America, Europe and Australia).The book contains 18 extensive checklists across many crucial areas for boards. These serve to clarify and emphasise key points.There are many case studies, drawing from both good/bad examples of corporate governance. The authors make use of their first-hand experience, and make use of their extensive contacts very effectively.A key aspect of their framing is to delineate between the board’s role in monitoring compared to leadership. They describe a continuing role for oversight, but a significantly increased role for proactive value-adding.The main conclusions and thesis have become rather conventional, and uncontested in listed company governance.The book contains broad and deep descriptions that are relevant to modern corporate governance. It could be beneficial to a range of readers, who are seeking greater understanding about how boards are changing.
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Top reviews from the United States

  • Reviewed in the United States on January 6, 2020
    The book contains advice from seasoned Non-Executive Directors, and it is directed at those who are holding NED positions and want to excel. It is an inside view of the board. The authors took their time to provide board room dynamics and how to make corporate boards effective.

    As a person growing in the professional NED role, the advice is practical and very helpful especially for those leading the board and CEO.

    The book focus on board competence, board effectiveness, board composition, board evaluation and board recruitment as the critical elements of driving business growth. The authors included several details of corporations as examples and case studies. This made the advice real and practical.

    At the back the authors gave templates and checklists that are valuable.

    The only weakness that I noticed is that it does not give advice to those who are outside on how to get into board positions.
    2 people found this helpful
    Report
  • Reviewed in the United States on October 6, 2014
    An important contribution to how boards should function. Most boards don't see themselves as organizational leaders. They see themselves as monitors and guardians, except when they have to change the CEO. This book contributes to breaking that mindset. Boards lead certain functions, partner on others, and need to stay out of the "no-fly zones" reserved for management. But where, when, and how? Rich with many examples, stories, and detailed checklists, "Boards That Lead" provides the answers.
    The book is light on the multi-stakerholder model, the importance of culture including ethics and integrity, and how to break the cycles of short-termism and excessive CEO compensation, otherwise I would have rated it higher. Worth your time if you are serious about creating more effective boards.
    3 people found this helpful
    Report
  • Reviewed in the United States on March 28, 2014
    The latest hot-off-the-press governance book warns, “Like neutrinos and Higgs bosons, early signs of faltering chief executives are often hard to detect.”

    The co-authors of “Boards That Lead” add, “Most chief executives are constitutionally optimistic, and since by definition their role is to surmount challenges, the tenor they bring into the boardroom is likely to be relentlessly upbeat. Taking executive overassurance into account will aid directors in detecting nascent troubles ahead, but it is only one piece of a very complicated puzzle.”

    That’s the first paragraph of Chapter 8, “Spotting, Catching, or Exiting a Falling CEO,” in this excellent book that delivers three big take-aways for board members. They’re summarized in the arresting subtitle: “When to Take Charge, When to Partner, and When to Stay Out of the Way.”

    “From our several decades of witnessing more than fourscore fumbling CEOs,” they write, “we have noted that, in virtually every case, warning signals were noticed early by at least one or two directors but were commonly not shared with directors. We learned of the indications in real time because alarmed board members privately disclosed their rising qualms about the CEO in our work with them.

    “The concerned directors were nonetheless hesitant—no surprise—to get the ball rolling. After all, they had helped pick the top executive, and they realized that a forced exit could be not only a career-ender for the executive but also a reputation-killer for themselves. Perhaps most inhibiting of all, they knew that the CEO often retained avid defenders among the other directors.”

    What should board members do? “…it is useful for directors to keep a weather eye on early signs of executive deficits. Assuming that the company’s central idea has been well formulated in the boardroom [Editor’s Note: You must read more on this—it’s worth the price of the book.], three embryonic indicators, if ignored too long, often mushroom into far more:
    • lack of strategy
    • failure to execute, and
    • wrong people calls.”

    Oh, my! Just when you thought you were knowledgeable in governance, along comes a 219-page poke-in-the-ribs, plus an incredible 40-page section with 18 checklists for board members, a bonus chapter on “Trends in Director Monitoring and Leading,” a director evaluation worksheet, and six golden pages on “Division of Responsibilities Between the Board Leader and the CEO.”

    Boards That Lead is a timely must-read for directors of both corporate boards and nonprofit boards. In the past six months (including this week) we’ve seen three high profile Christian nonprofit organizations on the Internet front page (and wishing they were not)—all three for different reasons—but the negative news was all prompted by board actions.

    Board service is not for the weak of heart.

    If you’re leading a board, on a board, or considering board service, you’ll want to read Chapter 3, “Recruit Directors Who Build Value.” The co-authors, including Ram Charan, author of “Owning Up: The 14 Questions Every Board Member Needs to Ask,” are big on questions. This chapter asks eight mission-critical questions of prospective board members, including: “Will the candidate be ready to stand tall and engage constructively when vital issues are on the line, the stakes and stress are high, and leadership of the company becomes even more essential?”

    “Root Out Dysfunction” is Chapter 4’s theme. “In our experience, as many as half of Fortune 500 companies have one or two dysfunctional directors.” The authors identify three types:
    • “Some see themselves as the smartest person in the room.
    • Others seek recognition.
    • Others are frustrated would-be CEOs.”

    They add, “Whatever their personal motives, they tend to micromanage or take boardroom discussions down dark alleys. We have seen a director interrupt the first five minutes of a CEO’s boardroom presentation and sour the mood of both board and management for the remainder of the day. The result is to impair, even negate, a board’s capacity to lead the firm. As in any group, a dysfunctional member can sabotage the entire team.”

    The authors recommend six personal qualities to look for in a board leader (often the board chair in nonprofit circles): 1) Executive experience, 2) Respect and confidence, 3) Collaboration and restraint, 4) Personal bonding, 5) Personal comfort, and 6) Resilience.

    Again—not for the weak-hearted. Board leaders (or board chairs) “can anticipate at least one major crisis during their tenures.” Under the “personal comfort” commentary, they share this wisdom: “Yet another factor defining the board leader is a sense of comfort in one’s own skin and place in life, with nothing yet to prove or still to achieve, most often the product of a long and successful career as a corporate leader in one’s own right—no coveting of the chief executive’s office, no longing for operational control.”

    Learning boards will discover vast insights and practical next steps:
    • Boards should ask new CEOs to draft a succession plan immediately (and the annual self-assessment should measure progress).
    • Caution! Leaders can change dramatically when they get the brass ring.
    • Nothing can make up for the wrong choice of CEO.
    • Ten principles for finding the right CEO (Warning: “Review outside consultants carefully to prevent conflicts of interest.”)
    • In risk management, why quantification alone is a false crutch.
    • The value of a one-pager with agenda/decision highlights sent before every meeting
    • The learned art of what to feed to the board
    • How to coach new board members to stay at the right “altitude” in board meetings
    • How to get maximum value from an advisory council or board (They quote Roger Kenny who says advisory boards are “like the Marines: They get you on the beach.”)

    And then this PowerPoint-worthy wisdom:

    “Execution is where management starts
    and the board stops.”

    Oh, my. There is so much more I’d like to add—but I must stop. This is a 2014 Book-of-the-Year contender on my list, and it’s only March. Enjoy!
    6 people found this helpful
    Report
  • Reviewed in the United States on August 1, 2015
    As someone who does consulting on effective Board of Directors, I found this to be a very helpful book. I read a ton of books on this subject, and have also read many (if not all) of Ram Charan's books and I found this to be among the best. Clearly written, excellent information and ideas, things that I found useful and applicable – which you don't always find in every business book. If you work with a Board of Directors – or serve on one – this is a book you should read.
    2 people found this helpful
    Report
  • Reviewed in the United States on July 19, 2019
    Having worked with non-profit boards for over 30 years, I found this book to be a delightful blend of the practical and the exemplary. Though some of the business examples did not directl8y apply to the non-profit setting, they still had good application to board functions in general. Additionally, the author provides some superb checklists and guides for board to evaluate and improve their governance. A well balanced and practical book for every board.
    One person found this helpful
    Report
  • Reviewed in the United States on February 26, 2014
    I highly recommend this book not only for board members and prospective board members but also for senior corporate executives and potential investors. The case studies (entertaining and often based on the authors' first hand experiences) provide valuable insights on topics such as "spotting, catching, or exiting a failing CEO", "recruiting directors who build value" and "staying out of the way". The authors' argue that today's boards have an increasingly important role as part of the leadership team in partnership with management in addition to their traditional governance role. But this book is far more than a set of best practices for the boards of America's largest companies. The authors' also provide an invaluable set of Director's Checklists (such as checklist 1: "Board Leadership Decisions - when to take charge, when to partner and when to stay out of the way", and checklist #10: "Is The Board Ready To Lead, Not Just Monitor, The Company". These checklists are thought provoking and invaluable.
    4 people found this helpful
    Report

Top reviews from other countries

  • Peter
    4.0 out of 5 stars Four Stars
    Reviewed in Canada on July 31, 2018
    very good
  • AB
    5.0 out of 5 stars Brilliant as always
    Reviewed in India on August 21, 2018
    The guideline for new and old board members and ceos and soon to be board members on the role and responsibilities of the board members. The ownership, participation and stay away decisions are critical for all board members. Checklists are really helpful.
  • David Maywald
    4.0 out of 5 stars Good coverage of how boards are changing
    Reviewed in Australia on October 25, 2022
    Published in 2014 by Harvard Business School, this is an ambitious book. The scope is mostly S&P 500, large publicly listed companies in the United States. A good effort has been made to make connections/draw lessons from international companies as well (Asia, South America, Europe and Australia).

    The book contains 18 extensive checklists across many crucial areas for boards. These serve to clarify and emphasise key points.

    There are many case studies, drawing from both good/bad examples of corporate governance. The authors make use of their first-hand experience, and make use of their extensive contacts very effectively.

    A key aspect of their framing is to delineate between the board’s role in monitoring compared to leadership. They describe a continuing role for oversight, but a significantly increased role for proactive value-adding.

    The main conclusions and thesis have become rather conventional, and uncontested in listed company governance.

    The book contains broad and deep descriptions that are relevant to modern corporate governance. It could be beneficial to a range of readers, who are seeking greater understanding about how boards are changing.
    Customer image
    David Maywald
    4.0 out of 5 stars Good coverage of how boards are changing
    Reviewed in Australia on October 25, 2022
    Published in 2014 by Harvard Business School, this is an ambitious book. The scope is mostly S&P 500, large publicly listed companies in the United States. A good effort has been made to make connections/draw lessons from international companies as well (Asia, South America, Europe and Australia).

    The book contains 18 extensive checklists across many crucial areas for boards. These serve to clarify and emphasise key points.

    There are many case studies, drawing from both good/bad examples of corporate governance. The authors make use of their first-hand experience, and make use of their extensive contacts very effectively.

    A key aspect of their framing is to delineate between the board’s role in monitoring compared to leadership. They describe a continuing role for oversight, but a significantly increased role for proactive value-adding.

    The main conclusions and thesis have become rather conventional, and uncontested in listed company governance.

    The book contains broad and deep descriptions that are relevant to modern corporate governance. It could be beneficial to a range of readers, who are seeking greater understanding about how boards are changing.
    Images in this review
    Customer image
    Customer image
  • OG
    5.0 out of 5 stars Great insights
    Reviewed in France on February 13, 2017
    All you always wanted to know about the "untouchable" VIP who take business decisions worth billions. Lots of specific cases, extremely informative.
  • lizzy D.
    5.0 out of 5 stars very good for someone joining a board as well as the experienced.
    Reviewed in the United Kingdom on March 5, 2014
    very good for someone joining a board as well as the experienced. The reading style is excellent and the various aspects of the challenges facing board members are well articulated. It is a must read for all non-execs