Owning Up

Your world as a director has suddenly changed. You've seen members of other boards take the heat when their companies imploded. The managements of Lehman Brothers, Bear Stearns, Merrill Lynch, and Washington Mutual clearly failed, but so did their boards. Now the board of every company beset with problems is coming under scrutiny.

The pressure is on. Your board must own up to its accountability for the performance of the corporation. Governance now means leadership.

Boards must change their modus operandi to address the new and complex issues that are emerging. These include

Ensuring liquidity in the context of the global financial crisis

Setting CEO performance targets in a very uncertain economy

Assessing strategy and enterprise risk under extreme volatility

So what should boards do now? What should they be talking about in their meetings and executive sessions? What decisions must they make? How assertive must they be regarding company priorities and operatin