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Selected Case

published: 25 Mar 2019

  • Topic: Leadership & Organisations
  • Region: Europe

Abstract:
The board of directors of a charity has to decide whether to give the acting CFO a permanent appointment. The decision is not a vital one but is so poorly managed that it leads to a blowout between the board members, such that the charity ultimately has to be wound up. The case thus illustrates the vital importance of maintaining positive dynamics among board members.

Pedagogical Objectives:
The objective is to demonstrate the negative consequences of poor handling of a board discussion. The case analyses the shortcomings of the vice-chair of the board using a framework called Fair Process Leadership (FPL), asking participants to estimate how far the precepts of FPL are adhered to. An interesting dimension is to illustrate the fundamental asymmetry of FPL whereby we minimize the unfair way in which we impose leadership on others, while magnifying the unfairness of their leadership when we have to submit to it. The case is typically used as a “practice” case on FPL before turning to more complex settings.

Keywords:
Corporate Governance, Board Dynamics, Fair Process Leadership, Group Decision Making, Not-For-Profit Organization, Non-Executive Directors


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