Blind Spots, Biases and Other Pathologies in the Boardroom

Chapter 10

Conclusion

When something major goes wrong at a corporation, some, if not most, of the blame is eventually laid at the feet of the board of directors. For example, before and even during the financial crisis of 2008 and 2009, General Motors (GM) was generally seen as having a “blue-chip” board that comprised many highly competent, very experienced board members who were apparently taking their jobs seriously. But after the financial crisis necessitated a GM bailout by the government, Steven Rattner, the federal government’s appointed “car czar,” concluded that “if ever a board needed shuffling, it was GM’s, which had been utterly docile in the face of mounting evidence of looming disaster.”¹ How can such a seemingly high-quality board ...