Boards: step up, don't be shy: a turnaround is hard work and requires an engaged board.

• Author: Chen, John
• Position: COVER STORY - Column

No matter how good business is, no matter how happy customers are, every company hits tough times sooner or later. Boards are crucial in setting the right conditions for senior management to forge a stronger organization.

Take it from someone who's been there a few times: While there's no easy recipe--Tolstoy's famous words about families hold equally true for companies--there are common traits among the boards I have worked with during a turnaround.

First and foremost is a recognition that turning around an organization in a funk requires as much common sense as fancy economics. It's hard work under trying conditions and it is of utmost importance that a board engages.

While it's essential to give senior management the latitude it needs on the strategy and implementation, a unified and active board does not shy from offering its guidance and expertise. Every director should add a unique piece of experience or wisdom. For example, I look forward to input from my board because I know they possess a variety of insights from their own distinguished careers.

Indeed, a diverse board is essential. Boards should be collaborative, but never put harmonious meetings above ensuring that directors bring a wide range of hard-earned knowledge. If a board lacks the requisite skills to adaptto changing conditions, it's incumbent on directors to add members or make changes. I've had the pleasure of working with boards that do not hesitate to add skills in the form of new directors.

A diverse and engaged board can ensure that the same holds true of its senior management. The right men and women in the C-suite are crucial to ensuring that every hour of every day is spent working toward the right goals. Boards that step up to the challenge of a turnaround empower their executives and hold them accountable. I've said in the pastthat an urgent, obsessive focus on getting it right can mean the difference between a successful turnaround and a lot of wasted effort.

That urgent...