This paper explores some of the corporate governance issues in an effort to help boards understand what they must do to be more effective. It considers the processes and practices that enable directors to challenge management more constructively. It goes on to examine how executives and Neds (non executive directors) can build an effective relationship that is challenging and questioning, yet positive and productive. The publication also stresses the importance of succession planning and long-term talent management as important aspects of the strategic role of boards – a factor that can make or break their organisations.

Our report includes examples from the banking industry, especially in the UK, but its insights can be applied in other sectors worldwide. Corporate leadership failed spectacularly in some leading UK companies. It is therefore inevitable that some of the most dramatic and relevant lessons can be learnt from British experiences. By painful necessity, the UK is now among those leading the way in corporate governance reform.