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July 22, 2010
Prof. Klepper on "The CEO's Boss"
I am posting the following on behalf of Prof. William Klepper.
Time for a Social Contract and Tough Love in the
It is time to go
beyond the employment agreement between a CEO and the Board in Corporate
America. Every CEO and his/her board should have a social contract. The first
element of that contract is a common commitment to "what they stand for as
an organization." In my book, The CEO's Boss: Tough Love in the Boardroom (Columbia University Press, 2010) I
provide examples of companies with clear credos, such as the revitalized Tyco
which has risen from the ashes as a result of following its social contract.
alone are not enough to guarantee satisfactory performance; tough love is
needed for a CEO and a Board to be an effective team. The CEO's Boss lays out how tough love in the boardroom may have
prevented Lehman's ultimate collapse in the fall of 2008. My Integrated
Leadership Model, based on my teachings as a Professor of Management at Columbia Business School,
synthesizes the research on an effective CEO's agenda, practices, and style at
each phase of the business cycle.
Finally, the current recession and business
failures have brought renewed attention to corporate governance practices. In The CEO’s Boss I tell you how I foresee
the relationship between boards and CEO's to be different in the future.
July 22, 2010 in Books, Corporate Governance | Permalink
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