There’s no universal model of a board – it varies from country to country and from sector to sector. It can have a single tier; or a clear distinction between the executive board and the non-executive (supervisory) board. It can be there to formulate strategy; or to assess and approve it.
When a board is made up solely of executives, it benefits from being a team. However, it lacks the external perspective that challenges their perceptions and assumptions. On the other hand, when the board is a mixture of executives and non-execs, teamwork becomes much more problematic. The NEDs are – at least in theory – there to exert collaborative independence. If they get too close into the team system, they lose that perspective. Sometimes, a half-way house is possible, when NEDs shadow executives.
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