Directors' Dilemmas

Dilemmas Defined

Dilemmas come in many forms. Some leaders equate dilemmas with disasters. To others, a dilemma is when you have to decide which of two good options is best. But when most directors use the word "dilemma," they mean, "A tricky spot with no immediately obvious conclusion and where the alternative solutions all involve some degree of pain."

Most board dilemmas have one of four sources:

1. "Confusion over the role of the board" - The board’s job is to develop strategy, ensure that the company has the resources to execute it, monitor its implementation and, frankly, to keep company executives and themselves out of jail. The board is responsible for verifying compliance with regulations and laws.
2. "The fact that humans are involved" - Like everyone else, directors take things personally. The interests of individual directors should be as closely aligned as possible with those of the board as a whole. If you are the board chairman, you need at least one person in your office who is not afraid to give you an unvarnished opinion.
3. "A changed situation" - Change elevates stress, and business...