Interesting read for all leadership and management. If you are a CEO, are you taking advantage of the network opportunities with positions on other boards? What are other issues when CEO and founder is one and the same?
Excerpt: Firms in serious decline are more likely to rebound and avoid bankruptcy if their CEOs hold appointments on other companies’ boards, according to this paper. The more numerous a CEO’s posts, the more likely it is that the firm will recover, lending credence to the argument that external board positions for corporate leaders provide more value than just social ties. Especially for the CEOs of struggling companies, board posts can be used to access outside expertise, advice, and resources that aid in developing and executing an effective turnaround strategy.
Unfortunately, according to this paper, the same is not true for a founder’s status. Having the original founder as CEO does not make it more likely that a company can recover from trouble.
Despite intense interest, especially in times of economic strain, in the factors that can turn a struggling company around, little research has been done on these two potentially important elements — whether the firm’s CEO holds posts on other boards and whether the CEO is a founder.
Read full article via Bettering the Odds for a Turnaround. From Strategy + Business