Three core principles for CBS' Board of Directors

CBS is at a crucial moment in time with lots of external pressures and changing demands that challenge the standing of this great institution.
It is important that we all step up to the situation and do our best to protect what has been built and adapt ourselves in a way that can continue to advance CBS as a leading business university that creates value for society.
But it is instrumental for a successful mission that we engage the deep insights that exist within the organization constructively, i.e., the board should adhere to 3 core principles.  

P1 – Many people in the organization have deep first-hand insights about the effect of current conditions that eventually drive the realization of strategic outcomes particularly in a knowledge-based organization.
Therefore, the board should listen to these voices, learn to improve the organization, and thereby get a better correspondence between what CBS teaches in the classroom and the way CBS conducts itself.

P2 – There is a (natural) tendency to focus on narrow stakeholder interests with concerns for (personal) consequences that blocks a long-term view and kills innovation.
Hence, the board should mobilize the insights from within the organization to inform discussions about future solutions.  

P3 – Collaborative values and high academic norms are essential to maintain the standing of research-based teaching at CBS and retain the (global) reputation of the institution.
In contrast to these principles, 3 common myths seem to predominate in contemporary board rooms with potentially adverse effects on mission accomplishment.

M1 – The board formulates and approves the strategy and top management implements the strategy to attain the intended outcomes.
In reality strategy derives from the actions taken by people throughout the organization as they execute their daily tasks.
Hence, the most important board efforts are to set a general direction and structure the organization so people can do a great job on behalf of the institution.

M2 – The primary responsibility of the board is to protect the owner interests and compliance with fiduciary obligations (e.g., spread sheets and budgets).
Yet, other concerns need similar attention including all the people that act on behalf of the institution, the customers and partners that respond to those acts, and the public that expects to gain long-term value from the entire enterprise.  

M3 – The board should manage the principal-agent relationship and align the interests of managers and owners.
But, this ignores other important issues. Incentives and motives of achievement and meaningfulness affect how things are done and should be a key board consideration. The board should also hone important external constituents and secure access to essential resources.

By working together in accordance with the three core principles and avoiding the adverse effects of three common boardroom myths, we can persevere and make this great institution even better.