The Fish Rots from the Head

Book Review

The Fish Rots from the Head

By Bob Garratt

This book is an offshoot of corporate scandals of the early 21st century which witnessed corporate greed, selfishness, incompetence, corruption and increasing criminalization of corporate misdemeanor. Crisis in board rooms in many major companies showed symptoms of corporate collapse. There were cases of abuse of office for personal and political gain and directorial corruption with the result public confidence eroded. Public's growing intolerance of directorial ignorance and incompetence in major companies in Western Countries e.g. France and Italy, called for growing demands for corporate accountability. The vast majority of directors admitted they had no training. Demands for transparency from the public resulted in seeking political intervention in corporate affairs.

The author suggests several essential measures for improving the competence of the Board of Directors. These are a Learning Board with mission, vision, values and ethics, creation of an emotional and cultural climate and steps for monitoring the external environment. He calls for completely different thinking skills, strategic thinking and accountability. The practices in different European countries are discussed and methods of board training and development outlined.

Assessment of performance of directors, development agenda and developing crucial skills are highlighted. There is emphasis on the need for transparency, transformation and for developing Directors' competencies.

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The book provides for a program of learning and clear and intelligent advice on how to improve the performance of the board. It emphasizes the need to curb greed and impart ethics and values in corporate management with the examples of Enron and some major companies in European countries

The Board has to function as an effective, reflecting, debating and decision making group with excellence and commitment. It has to set example of predominant values for the organization as a whole. The author recommends setting up Centers of excellence for director development, developing relevant attitude and skills for directing the enterprise with integrity. He calls for professionalization of directors, a system for director accreditation and registration, establishment of Learning Boards and for ensuring accountability, transparency, and restoring public confidence in addition to a combined code of corporate governance

These measures serve go a long way to achieve effective corporate governance

This lucid, very readable book should help to ensure that many more fish swim than rot from the head.

T Ramaswamy

ramas342011@hotmail.com