The balance of power

If the power is not used, the decision making ability of the organisation decreases.

In my writing in Finnish I referred to the book written by two Finnish board professionals Matti Lainema and Mikko Haapanen. The authors discuss about company shareholders and they say, among other things, that there is very little joy of superior executive ability in case the board of directors does not enjoy the confidence of the shareholders.

In addition, the authors state that in turbulent world the balance of power is the best model.

They refer to professor Bill George who has analysed different types of shareholders with diverse interests. Who then the board of directors should listen to?

The weakness of a company is always the board of directors’ fault and the success is thanks to the management according to the authors.

Moreover,  90 % of superior strategies fail because of weak implementation. Michael Porter emphasizes, as well, that it is better to focus on B-class strategy and A-class implementation than the other way round.

According to some research (e.g. Harpst 2008) the most difficult obstacle in implementation is the ability to overcome the internal resistance.