Strategy

How can companies combat the overconfidence and tunnel vision common to so much decision making?

How can a board of directors be strengthened so that it can more effectively evaluate a company's performance, assess its management, and act to change the course of a corporation? The authors suggest eleven steps to reform a board's character and fortify its monitoring function. Among them are composing a completely independent board, with no company employees except for the CEO; establishing a lead director; aligning management's and directors' compensation with shareholders' interests; and strengthening the audit committee.

When someone asks, "What is your bottom line?" few negotiators tell the truth. How much bluffing is ok?