Individual Board Members Research Articles

Lack of role understanding can wreak havoc at the organization

In “Wish List for a New Chairman at Carnegie Hall,” which appeared in The New York Times last December, board members can find a very good lesson on understanding the board and individual board members' roles.

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EDITOR'S SUMMARYThe ASIS&T strategic plan has been the predominant concern of ASIS&T board members leading into, during and following their retreat in July 2015. After updates from committees, chapters, SIGs and others, the Board, along with past and future leadership, focused on the findings of the Strategic Planning Task Force (SPTF). These included analysis of member input and reports from internal and external sources, together with a resulting compilation of proposed strategic directions. The directions identified generally address membership, programs, communications, outreach and institutional knowledge. The Board brainstormed goals and objectives for each of the five strategic directions. Individual board members will join working groups representing each of the directions to refine the goals and objectives. A draft strategic plan will be posted online by October 2015 to stimulate and solicit member feedback. The draft will be revised and presented to the Board for adoption at the 2015 Annual Meeting, and subsequently reviewed and revised as appropriate. Thanks are extended to the many members and leaders who participated in the strategic planning process.

Overseeing oversight: governance of quality and safety by hospital boards in the English NHS.

To contribute towards an understanding of hospital board composition and to explore board oversight of patient safety and health care quality in the English NHS. We reviewed the theory related to hospital board governance and undertook two national surveys about board management in NHS acute and specialist hospital trusts in England. The first survey was issued to 150 trusts in 2011/2012 and was completed online via a dedicated web tool. A total 145 replies were received (97% response rate). The second online survey was undertaken in 2012/2013 and targeted individual board members, using a previously validated standard instrument on board members' attitudes and competencies (the Board Self-Assessment Questionnaire). A total of 334 responses were received from 165 executive and 169 non-executive board members, providing at least one response from 95 of the 144 NHS trusts then in existence (66% response rate). Over 90% of the English NHS trust boards had 10-15 members. We found no significant difference in board size between trusts of different types (e.g. Foundation Trusts versus non-Foundation Trusts and Teaching Hospital Trusts versus non-Teaching Hospital Trusts). Clinical representation on boards was limited: around 62% had three or fewer members with clinical backgrounds. For about two-thirds of the trusts (63%), board members with a clinical background comprised less than 30% of the members. Boards were using a wide range and mix of quantitative performance metrics and soft intelligence (e.g. walk-arounds, patient stories) to monitor their organisations with regard to patient safety. The Board Self-Assessment Questionnaire data showed generally high or very high levels of agreement with desirable statements of practice in each of its six dimensions. Aggregate levels of agreement within each dimension ranged from 73% (for the dimension addressing interpersonal issues) to 85% (on the political). English NHS boards largely hold a wide range of attitudes and behaviours that might be expected to benefit patient safety and quality. However, there is significant scope for improvement as regards formal training for board members on quality and safety, routine morbidity reporting at boards and attention to the interpersonal dynamics within boards. Directors with clinical backgrounds remain a minority on most boards despite policies to increase their representation. A better understanding of board composition, actions and attitudes should help refine policy recommendations around boards.

Does it matter who serves on the Financial Accounting Standards Board? Bob Herz’s resignation and fair value accounting for loans

Despite the perceived importance of accounting standard setters, it remains unknown whether and how much individual FASB board members can influence specific accounting policies because it is difficult to measure any board member’s impact during the process of accounting standard setting absent an exogenous shock. In this study we utilize a unique setting to answer this question. On August 24, 2010, the then FASB chairman Bob Herz resigned unexpectedly. Prior to his resignation, he had supported a highly contested accounting proposal on fair value on bank loans. Earlier in May Herz cast the deciding vote for the FASB to propose applying fair value to bank loans, causing strong pushbacks from banks and bank regulators. We examine whether Herz’s abrupt resignation changes the market’s expectation on whether the fair value proposal would be finalized. We find that banks responded positively to Herz’s resignation, more so for banks that would be affected more. They also responded negatively when the FASB first proposed the fair value requirement and positively when the FASB later dropped it. Our results indicate that the stock markets believe that Herz’s position is crucial in affecting the direction of the fair value accounting for bank loans. Our study provides initial evidence of a single FASB board member’s influence on accounting policymaking.

Does it Matter Who Serves on the Financial Accounting Standards Board? Bob Herz's Resignation and Fair Value Accounting for Loans

Despite the perceived importance of accounting standard setters, it remains unknown whether and how much individual FASB board members can influence specific accounting policies because it is difficult to measure any board member’s impact during the process of accounting standard setting absent an exogenous shock. In this study we utilize a unique setting to answer this question. On August 24, 2010, the then FASB chairman Bob Herz resigned unexpectedly. Prior to his resignation, he had supported a highly contested accounting proposal on fair value on bank loans. Earlier in May Herz cast the deciding vote for the FASB to propose applying fair value to bank loans, causing strong pushbacks from banks and bank regulators. We examine whether Herz’s abrupt resignation changes the market’s expectation on whether the fair value proposal would be finalized. We find that banks responded positively to Herz’s resignation, more so for banks that would be affected more. They also responded negatively when the FASB first proposed the fair value requirement and positively when the FASB later dropped it. Our results indicate that the stock markets believe that Herz’s position is crucial in affecting the direction of the fair value accounting for bank loans. Our study provides initial evidence of a single FASB board member’s influence on accounting policymaking.

Abstract ADV05: From the golf course to education, outreach, and support for prostate cancer.

Abstract Central Ohio Men Against Prostate Cancer (COMAPC) is a community-based, all volunteer, non-profit organization. Our mission is to increase prostate cancer awareness and routine screening through education, support, and advocacy across cultural and economic barriers. Our primary focus is to reduce disparities that exist in prostate cancer among minorities and the medically underserved. Prostate cancer is the second leading cause of cancer death in African American men. An estimated 35,110 cases of prostate cancer were expected to occur among African American men in 2011, accounting for 40% of all cancers diagnosed in African American men. It was estimated that 5,300 deaths from prostate cancer would occur in African American men in 2011. In addition, African American men have the highest mortality rate for prostate cancer of any racial or ethnic group in the United States with the death rate being 1 in 22 cases compared to 1 in 38 cases for white men. Our goal is to help Central Ohio men and their families become more informed about prostate cancer, better informed about treatment options for the disease and encourage men to seek early screening. COMAPC provides prostate cancer education, outreach and support for men, the friends and families of at-risk men and those diagnosed with prostate cancer. Our efforts help people connect with those resources so they become more aware of prostate cancer, better informed about treatment options, and support men to seek early screening for prostate cancer. Individual COMAPC board members actively participate in national service and advocacy initiatives such as the U. S. Army Research and Materials Command Prostate Cancer Research Program. American Association of Cancer Research Survivor<->Advocate Program, US Too National Prostate Cancer Education and Support Team, National Association of African American Prostate Cancer Advocates, National Alliance of State Prostate Cancer Coalitions, American Cancer Society Cancer Action Network, We Work for Health-Ohio, and State and National Congressional Lobby Days. Citation Format: Egbert Brown. From the golf course to education, outreach, and support for prostate cancer. [abstract]. In: Proceedings of the 104th Annual Meeting of the American Association for Cancer Research; 2013 Apr 6-10; Washington, DC. Philadelphia (PA): AACR; Cancer Res 2013;73(8 Suppl):Abstract nr ADV05. doi:10.1158/1538-7445.AM2013-ADV05

Measuring Internationality Of Board Members via Secondary Data A Comparison Of Methods

he assessment of the internationality of board members is based on the quality of the assessment of each individual member. In practice, different indices based on secondary data are used to capture the internationality of management boards. The CVs of 213 board members of DAX-listed companies were analyzed with regard to internationally relevant data with the aim to compare the quality of the refined benchmark index InEx NWE+WE P to a selection of indices used in practice in terms of their information value. The results show that the partly very simplistic indices used in practice lead to significant distortions with regard to the assessment of the internationality of individual board members and thus of the management boards as whole. In other words, the simpler indices dont use the information potential of the existing secondary data sufficiently, thus enticing the viewer to partly significant misinterpretations.

Boardroom Strategic Decision‐Making Style: Understanding the Antecedents

AbstractManuscript TypeEmpiricalResearch IssueThe purpose of this study is to develop an understanding of the antecedents that lead to boards embracing either procedural rationality or political behaviors as a particular style of strategic decision making.Research FindingsSemi‐structured interviews with 29 directors and officers of eight publicly‐tradedUScompanies were conducted. Of the eight boards analyzed, there were clear differences in the predominant style of decision making operationalized by each. More importantly, however, the variance between boards that tended towards procedural rationality versus political behaviors as the predominant style of strategic decision making was explained by three primary factors. These included: (1) shared mental models; (2) balanced power relationships between the board members andCEO, as well as amongst individual board members; and (3) board chair leadership skills. Our data allow us to identify important antecedents of these factors.Theoretical ImplicationsWe add to the work seeking to understand the processes associated with board level strategic decision making. We augment decision‐making theories relating to procedural rationality and political behaviors with board‐specific factors and their characteristics.Practitioner ImplicationsWe isolate a number of antecedents relating to the conduct of boards and the environment of board decision making. We also highlight the roles of the board chair and theCEOfor creating a boardroom environment conducive to engaging in quality decision‐making processes.

A Learning Architecture

Purpose: The field of socially just educational leadership focuses on reducing inequities within schools. The purpose of this article is to illustrate how one strand of social learning theory, communities of practice, can serve as a powerful tool for analyzing learning within a school ostensibly pursuing social justice. The author employs a core dimension of the theory of communities of practice, “learning architecture,” as a conceptual framework to analyze one such school. Research Design: For the case study presented here, data were collected in the form of interviews with teachers, administrators, support staff, and volunteers and board members ( N = 21), field observations, and archival documents in an elementary school over the course of a school year. Findings: Members within a school community belong to multiple, overlapping, and interacting “communities of practice,” groupings of individuals who share common interests, practices, and purposes. The learning architecture illuminates design features that affect learning within and across these communities of practice. These features both facilitate and frustrate the efforts of individual teachers, administrators, support staff, and volunteers and board members to pursue social justice. Conclusions: This research suggests that the theory of communities of practice, and in particular the learning architecture therein, can be a valuable analytical tool within the field of socially just educational leadership, providing a perspective on how individuals within school communities learn to better serve traditionally marginalized students, along with the interconnections, depth, and edges to this learning.

Role ambiguity and volunteer board member performance in nonprofit sport organizations

AbstractWe explore the relationship between multidimensional role ambiguity and individual board member performance within nonprofit voluntary sport organizations. Role ambiguity accounted for 29 percent of the variance in perceived board member performance, and ambiguity about one's responsibilities was the strongest predictor. These findings extend our understanding of the drivers of individual board member performance within voluntary sport organizations and the multidimensional nature of role ambiguity. The study supports previous arguments that knowing what to do is fundamental to one's performance, and more critical than knowing how to do it, and what difference it makes.

Shareholder interests vs board of director members' interests and company performance

Purpose – The purpose of this paper is to examine the relationship between board alignment with shareholder interests using a new measure of perceived board effectiveness, which is designed to capture the alignment of the directors with the interests of shareholders.Design/methodology/approach – Specifically, the paper looks at the Rotman/Clarkson (CCBE2) Canadian Board Shareholder Confidence Index as the measure of shareholder's perceptions of the board's efficiency as it relates to company performance. The index is ostensibly designed to capture the essential factors affecting shareholders' confidence in the boards' abilities to fulfill their duties. The CCBE2 Board Shareholder Confidence Index assigns scores to companies based on the consideration of the following three perspectives: potential of individual board members; potential of the board as a group and past practices of the board. The measure of performance is the firm's Economic Value Added™ (ER), which is a metric for a company's ability to ge...

Responsibility And Accountability: Towards An Integrative Process Model

Accountability is increasingly critical for individual managers, company directors and board members, as well as for organizational operations. Despite growing attention in the literature, accountability processes are generally poorly understood and under-researched. This paper seeks to clarify the concepts of responsibility and accountability, and show how they relate to each other. The Integrative Responsibility and Accountability Process Model proposed here integrates responsibility and accountability processes from the viewpoint of both accountor and accountee. It is intended to be applicable at both individual and group levels in organizational settings.

Prophylactic human papillomavirus vaccination against cervical cancer: a summarised resource for clinicians

The South African Human Papillomavirus Advisory Board was established in August 2005 as an independent advisory group of clinicians and scientists, considered to be opinion leaders in the field of gynaecological oncology and cervical cancer epidemiology and screening. The Board is affiliated to SASOG and SASGO and is supported logistically by several companies with an interest in HPV-related disease. The members of the Board do not declare any conflict of interest. The opinions and recommendations expressed in this document do not reflect the policy of any company or the opinion of any individual board member, and is not meant to be prescriptive or legally binding.These guidelines are intended and presented as summarised information for health care providers and managers, interpreted with South African data and conditions in mind, on which to base clinical decision making. This document represents the first major revision of the vaccine document published in 2008 and will continue to be revised. For the r...

Cardiovascular Engineering in the First Decade of the 21st Century

It was in the year 2000, at the turn of the 21st century, my original idea to establish a forum for cardiovascular engineering professionals finally came to fruition. On the invitation of Kluwer Academic Press, the first issue of Cardiovascular Engineering: an International Journal began exactly a decade ago and it was an exciting moment. It has been an endeavor that has taken considerable effort and energy in maintaining timely publications of high quality articles in my role as the Editor-in-chief and in the fulfillment of the many authors’ sense of accomplishment, seeing their research in print of a refereed journal. The Journal was aimed at providing a forum to promote an international scholarly exchange among scientists, clinicians and biomedical engineers with a common interest in the cardiovascular field and with a particular emphasis on the utilization of quantitative and technological methodologies. As such, the Editorial Board members were recommended from nations in North and South America, Asia and Europe. For any new journal to be longstanding and profitable for the publisher, a professional society affiliation is often necessary. Our Journal did not have this leisure. And it came half a decade later, after Springer took over Kluwer, to include the Journal in major citation bodies and providing us with paperless Electronic Manager for manuscript reviews. It has been the contributions from the many authors, as well as the capable effort of some of the editors, production editors and editorial assistants that made uninterrupted quarterly publication of the Journal possible over the decade. In my appreciation, and if I could name a few individual Editorial Board members of their contributions, the late Prof. Leslie Geddes, the Presidential Medal of Technology recipient, would be the first. Known as the ‘‘Father of Cardiovascular Engineering’’, he paved the growth of the field of cardiovascular engineering for several decades. He gave his best support to the Journal and consistently contributing articles of new advances in technology for combating heart disease. We should all marvel his high energy and achievement. Prof. Abraham Noordergraaf, known as the ‘‘Father of Cardiovascular System Dynamics’’ has energized his European collaborators in making contributions to the Journal. Prof. YC Fung, known as the ‘‘Father of Biomechanics’’, has been a kind supporter of the Journal in its inception. So are the continued support from Dr. Peter Kerkhof, Dr. Max Valentinuzzi and Dr. John Clark. Guest editors of the Special Issues which have received high marks were attributed to the wonderful work of Dr. Jerry Batzel and his colleagues from the University of Graz. I had planned to serve as the Editor-in-chief for just a few years, but it quickly turned into a decade. It is time for me to move on to publish my own research work in other highly ranked journals which have missed many of my publications in the past decade, as I chose to publish in Cardiovascular Engineering. I will also return to concentrate on my longneglected fondness of writing books. I will embark on new adventures of writing on exciting topics, and to continue to serve as World Scientific Publishers’ Editor-in-Chief of Bioengineering and Biomedical Engineering Book Series.

Turbulent times require a greater focus on board effectiveness

PurposeThis paper seeks to explore the necessary considerations in assessing and improving board performance in a Fortune 50 organization facing complex strategy execution challenges.Design/methodology/approachFace‐to‐face interviews with all non‐executive directors, the CEO and other senior executives were used to conduct a detailed evaluation of board performance, so as to highlight any potential areas of execution or governance risk and underperformance arising from gaps in competence, process or culture. In addition, analysis was carried out of overall board effectiveness and of individual board member contribution using detailed 360‐degree and aggregate questionnaires completed by board and key members of the management team. Further insight was gained from detailed benchmarking against global peers.FindingsThe work highlights that for a board to be a valuable differentiating asset to a company it is vital to balance the governance and oversight role of the board with a supportive and partnering relationship with executive management. This requires that a board should possess the necessary depth and breadth of experience to gain the respect and trust of the executive; that the chairman and CEO should define a contract that describes the nature of the relationship and the division of responsibilities between executive and board; and that the chairman should strive to create an open and challenging dynamic and constantly seek to improve board behaviors and interaction.Practical implicationsIt sets out clear objectives in building boards with complementary skill sets and experience and in embedding a culture of continuous self‐assessment and improvement.Originality/valueStrategic HR practitioners are encouraged to consider the value of the board to management as a differentiating asset for the organization.

Exploring the Scholarly Output of Academic Organization Leadership in Criminology and Criminal Justice: A Research Note on Publication Productivity

A number of studies analyzing publication productivity of criminology and criminal justice scholars have emerged in recent years. More specifically, this body of literature applies varied cross‐sectional and longitudinal methodological approaches to demonstrate the publication productivity of scholars. Furthermore, these studies often diverge in their operationalization of the key construct of interest (publication productivity); however, one relative consistency is the list of “elite” criminology and criminal justice journals. This study seeks to explore the elite publication productivity among recent executive board members of the American Society of Criminology and the Academy of Criminal Justice Sciences along with the board members of Academy of Criminal Justice Sciences’ regional affiliate associations. Comparisons are made between and within organizations/associations, and individual board member rankings are also presented. The results of this study indicate that publishing in the elite criminology and criminal justice journals is rare and there is variation across organizations/associations and variation among their respective members in the rate of publishing in these elite journals. Suggestions for future research examining publication productivity are also discussed.

Effective boards of directors: an examination of director behavioral-types

The study sought to explore the role that director behavioral-type might play in leading to board effectiveness. The study involved direct observation of twenty-one boards of directors or committee meetings, together with interviews of 194 respondents. The study suggests that board process may be an equal if not more important factor than board structure in determining board effectiveness. The study’s data suggests that board processes, in turn, may be influenced by the behavioral-types of individual board members. Based on the three dimensions of dissent/consensus; individual/collective; and persuasiveness/non-persuasiveness, five director behavioral types leading to a functional board emerged from the study including: (i) change agents; (ii) consensus-builders; (iii) counsellors; (iv) challengers; and (v) conductors. Five director behavioral types leading to a dysfunctional board also emerged including: (vi) controllers; (vii) conformists; (viii) cheerleaders; (ix) critics; and (x) caretakers. The study concludes with its limitations

Commitment, Involvement and Performance of Voluntary Sport Organization Board Members

This paper explores the relationships between board member commitment, involvement and perceived performance within voluntary sport organizations. The paper specifically examines these relationships within the context of country race clubs in Victoria, Australia. After controlling for the effects of board-member age, it was found that commitment and involvement accounted for 31% of the variance in perceived board member performance. Affective commitment was found to be the most significant predictor of perceived board member performance, followed by tenure and the number of hours individuals devote to their board member role. These findings further extend our understanding of the drivers of individual board member performance within voluntary sport organizations.

What Independent Directors Should Expect from Inside Directors: Smith v. Van Gorkom as a Guide to Intra-Firm Governance

In this article, I appraise the ability of individual directors to motivate those who serve with them on the board to exercise care. I focus on the relationship between independent and inside directors. I discuss horizontal monitoring - the process by which members of a corporate board monitor each other. I suggest that outside directors make clear their expectation that inside directors satisfy care obligations. The goal in this article is to encourage the accountability of inside directors - not to shareholders through derivative litigation - but to independent members of the board through horizontal monitoring. The duty of care, as articulated in Smith v. Van Gorkom and other case law, is a normative guide for internal governance of the corporation. The focus in this article is on the relevance of the duty of care to internal governance processes rather than judicial review of board decisions and processes. The duty of care can provide a way for independent directors to evaluate the inside directors who serve with them. The duty becomes relevant as a way to define the expectations that outsiders should have from inside board members. Once this happens, the duty of care would become an explicit part of what outsiders ask of insiders. Inside directors are likely to fulfill this expectation because of the dynamic of horizontal monitoring that encourages individual board members to perform their duties in a way that will meet the approval of other board members. I also consider the ability of independent directors to monitor and assess the conduct of inside directors when those insiders act as corporate officers. The unitary approach that courts take when reviewing a board's decision-making process ignores the conduct of individual board members who participate in the decision-making process not only as directors but also as officers. The traditional focus on a board's collective decision-making obscures the notion of individual accountability and responsibility. Even if courts should consider board conduct as a collective, this should not obscure the need for clarification of the relationship between inside and outside directors, and the need for independent board members to let inside directors know what is expected of them. The approach to internal governance I advocate in this article requires independent directors to determine when insiders act in their capacity as directors and when they act as officers. I use the term role differentiation to describe the practice of distinguishing among the various roles undertaken by a single individual.

Corporate Governance of Nonprofit Organizations: Cooperation and Control

This article explores the limits of institutional economics regarding the cooperation of boards of directors and executive directors of nonprofit organizations. The normative separation of power between these central actors resulting especially from arguments derived from institutional economics is being reflected using the analytical approach from the resource-based view and empirical evidence based upon group and motivational theory. After analyzing the board’s role and the individual board member’s role within a nonprofit organization, the paper explores the limits to decision-making within governing bodies. The paper shows why a unitary board can improve the quality of decision-making within nonprofit organizations by raising the incentives for the executive director to act as desired. The paper also explores the impact of trust and different types of control upon the key actors within the governance process in order to derive the suitable form of control from that analysis.