Maintain a Holistic Viewpoint to Bolster Company Value
For directors, it’s essential to understand a company’s finances and anticipate future obstacles.
In a McKinsey & Co. survey of 1,597 public company directors in 2011, 34% of directors said they did not understand "industry dynamics" and 26% did not understand how the company created value. Just 10% said they knew the industry, and only 16% knew how the company created value. McKinsey studies through this July reinforce these numbers and conclude, "few say their boards are better at creating long-term value."