How to Resolve Board Disputes More Effectively
Companies have a number of internal and external conflict-resolution resources at their disposal. In addition, they should consider creating the new role of board ombudsman to mediate disagreements.
In 1999, Coca-Cola Co.’s CEO, Douglas Ivester, handpicked successor to popular Roberto Goizueta, was surprised in a Chicago airport by two members of the flagging company’s board of directors. According to the directors, Ivester’s hardhanded tactics with local bottlers and European regulators had alienated business partners and shareholders and left him with a reputation for not listening to the board. Mistakenly believing that the two directors spoke for the entire board, ...
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