PPPA 6058 Lecture Notes - Lecture 5: Micromanagement
Document Summary
Complex function of the board to hire and fire the director: Often the ceo is the founder who brought the board together, which complicates the relationship between ceo and board. Reassure the staff since they have allegiances -> you don"t want star employees being shaken and leaving. Show the staff that they are valuable regardless of the transition of leadership. It is an unspoken rule that all board members have to raise money: it"s hard to pin-point who will be an effective fundraiser. Failure of oversight can lead to a scandal and breach of legitimacy. Gates do not require a seat on the board when they give a large donation -> healthy practice and a sign in their trust that the org is true to its mission. Gates travel to advocate billionaires" involvement in improving the world. Term limits are very important, because you get people who become stale/set on their ways and don"t even know it.