RECOMMENDATIONS Mortenson had no prior experience serving on a board and lacked the knowledge and skills to effectively manage CAI as it grew. While a better suited president would set an example for the other members and staff, Mortenson took advantage of his position by accepting travel fees from event sponsors even though CAI was already paying his travel costs. He took money donated to CAI and spent it on personal items such as charter flights for family vacations, clothing, and internet downloads. Additionally, Mortenson fired those who tried to rein him in and apply methods of accountability. He also deliberately put people who were loyal to himself on the board, so he could remain in power. Anyone exhibiting founder syndrome that …show more content…
CAI has already seen the adverse effects of a member with his own agenda, but a bad board member is far less potent in a larger group than in a smaller group. It also allows for the board to collect a multitude of members with a wide variety of skills that could improve the organization. With more members with fewer responsibilities, each member could hone their skills and accomplish their set goals more efficiently (Worth, 2009, p. 115). While removing Mortenson could solve many issues for the CAI, it also comes with potential drawbacks such as loss of founder’s insight. Mortenson made most of the important decisions on his own, or used his influence to force board to vote in his favor. With his absence, remaining board members would be unaccustomed to making their own decisions and may make poor decisions. Board members may feel lost without the founder’s guidance and find that the current board does not have the skills or ability to go on without him. This could possibly be eradicated by hiring an experienced replacement with the skills and knowledge to successfully run an organization. Another drawback that could result from Mortenson’s absence is loss of loyal board members. The board was selected for their loyalty and as such they may be displeased to see him leave. Some may choose to leave if they feel like new members will lack the passion that the founder had or they may feel bitterness towards
However, the process was unstructured: there were no annual terms for the board members and no formal election process. Bob and Rex should have put in contractual agreements with the board members, which defined their roles and responsibilities on the board. Additionally, they should have put in performance based incentive plans for the board members to further incentivize them. Furthermore, a formal selection plan should have been drafted to select the board in future: how many members, their expertise, tenure, etc. This plan would have been very useful if someone on the board decided to leave or if they would have wanted to add a new
On July 11, 2013, a new leader was introduced in the Market Basket organization, Arthur S. Demoulas. The Market Basket community was informed that ASD gained control of the board of directors and had set an agenda. His agenda, alone, indicates what type of leader ASD would turn out to be. Arthur S. Demoulas set out with an agenda to fire Arthur T Demoulas, slow growth, take on debt and increase profits through price increases while increasing the wealth of the shareholders by stripping cash reserves. (Admin, 12/31/2013 Good Riddance 2013; retrieved: www.wearemarketbasket.com). As new CEO, the very first act was to distribute $250 million in profits to the nine family shareholders. The Boston Globe stated it best when they stated “it was an uncharacteristic act of greed for a firm known for its generous treatment of its workers and concern for price-conscious shoppers” (8/27/2013 Market Basket’s Decent into Greed; Retrieved: www.bostonglobe.com). ASD’s leadership style differs vastly from that of his predecessor. In fact, I’m not even sure how I would categorize ASD aside from greedy and self-centered. He does not
Gill puts forth his four pillars of excellence in which he thinks every good board possessed. These pillars are Board Development, Management of board work and meetings, decision making and . board and organizational culture.Throughout this paper I will show how after the departure of sarah the league designed and created a good board by implementing each pillar.
As Gill has stated “A committee's function is to bring the experience, expertise and judgement of a group of interested and informed individuals to bring a specific area of the corporation's responsibility,” (Gill, 2005). The boards would each research and gather informations, analyze data, come up with affirmative action plans and present these finding, plans and suggestions to the board, the board will then discuss the suggestions and decide on the best course of action. The three committees I would suggest would be financial and risk management committee. a fundraising committee and a program/ service committee that also handles quality assurance. Each of these committees would ensure that key areas of governing is constantly paid attention to. These committees would give board members a sense of purpose as it would utilize their best talents and have them focus their areas of expertise to create strategic plans for each
d) But the extra work doesn't just make people feel good. "Watching how employees manage these committees helps us create a great bench of leaders for the company," says Copeland.
To make matters worse, Nortel’s Board of administrators failed to have one member that had monetary experience. The twelve-member board was freelance of Nortel, however, most of the members had alternative directorships. This created it troublesome for them to
Another major event in the case was Levy’s decision to fire his COO. When he first took the job in January, many board members urged him to fire her. He declined, and as of April 9th, he was happy with her performance and said he would not be making any major organizational changes. Less than a month later, however, he asked her to step down saying, among other things, that she never “got anything done” and that she exerted too much control over “people and data.” Structurally, her dismissal reinforced the hierarchy and role definition he had been working hard to establish. Additionally, he appeared to operating from the symbolic frame because, had he fired her immediately based on the advice of the board, it would have looked as though he wasn’t in charge. By waiting to fire her, he made it appear as though it was strictly his decision because deciding who the COO should be is not the “board’s job.”
Members Characteristics – Overall, Hausman did a good job on assembling his board of directors. When determining who will make a good board member there are several things to look for. First a good board has an expert in legal matters, accounting, marketing, human resources, and finance. The only expert missing from RO’s board is a human resources expert. Next it is important to ensure that all board members will be able to regularly attend meetings. While most board members were local, several were not, and it was an area RO could improve. Also for outside members of the board, it is important to have knowledge of the industry and/or target market. With the appointment of the EVP of a large health snack company, Hausman made a good appointment (although location is an issue), but the knowledge that the CEO of the tech company may bring to the table may not be valuable. Finally, it is important to have complimentary personality traits. Overall, the RO’s board of directors is a strong, valuable board.
This company in recent past was floundering under a leadership and management style that had become bloated and unproductive. The board of directors had swelled to more than 50 members with no clear lines of communication between the board, the CEO, and management. This created a void as directives and tasks became poorly understood and remained unfinished. The goals of
Part of the problem with the board was that all its members were Lloyd’s golfing friends and he was viewed as “Mr. Network” (Swayne et al, 2008, p.620); one of the board members is a recovering alcoholic and his only connection was he was a product of Rosemont Center, the other board member owns many businesses that provided nonmedical supplies to Rosemont and the remaining two members were partners in the accounting firm that audited the facilities books! The reality still remains, Rosemont was in trouble and liquidation was not an option, Rosemont had to be turned around.
Do you think that it was because of Mason that Groupon was unable to transition smoothly through it’s growth and development stages, or can you identify other possible causes?
Considering the construction of my organization's board, which is comprised of 51 individuals, ranging from the 30 elected representatives from the organization's largest chapters to the 21 business leaders
In conclusion, it is very important to have members who are committed to their duties since they are the shareholders where they can either lead the program to its success or failure. Thus, every member must contribute effectively and efficiently to lead the program to the achievement of its set goals. As a result, any involved shareholder including the industry, teachers, and students will be able to have adequate knowledge that will enhance them be effective in the current world that in inconsistent based on skills as well as
The board consisted of the leaders of their own fields. It included physicians, lawyers, politicians and some of the former CEOs of airline industry. The board was relatively new and the most severe member had been there for four years. The risk management was the major issue which attracted most attention of the board and they dedicated more time on attention n risk management since the financial collapse.
The language used in The Removalists is brutal and bawdy and functions as verbal violence (dominated by men). The power struggle between them is fought with aggressive, ridiculing languages and physic violence. Clichés with sexual innuendo occur frequently and are used in retaliation.