The Role of the Corporate Board (Part 3)

Richard Levy, chairman of Varian Medical Systems, talks with Jim Balassone, executive-in-residence at the Markkula Center for Applied Ethics at Santa Clara University about the relationship between corporate boards and company management.

Levy identifies potential problem areas including micromanagement by the board and creating an adversarial relationship. While he says there is no formula for an effective board, he recommends:

Setting clear objectives to which management has agreed, and regularly reviewing progress in meeting those objectives.

Paying attention to the chemistry of the board and dealing with divisiveness.