Latino Leaders: In your experience, what are the main factors for a CEO, like you, to have a 100% effective Board of Directors?
Antonio Carrillo: I think the most important condition for having an effective board is to have alignment between management and the board on the strategy of the company. If that alignment exists, the board will be able to evaluate how decisions made by management align with the strategy and measure progress. Another important factor is that the board needs to have a respectful environment where every Director can speak their mind openly and at the same time listen to the other Directors' opinions.
LL: What is the benefit of having more diverse and inclusive Boards?
AC: Diverse boards should bring different points of view on every topic. So, discussions become richer in terms of content and ways to approach different problems. Part of the Board's responsibilities is to oversee risk management in a company. A diverse board will be able to approach risk factors from different points of view and, therefore, be able to evaluate risk better.
LL: In your experience, what elements are necessary to have the perfect marriage of a Board and the CEO?
AC: Transparency and trust are the key factors in a relationship between management and the board. Another important factor is that there should be clarity of the responsibility of management and the board. Finally, communication plays a key factor, making sure the board is informed of important topics and there are no surprises.
LL: What is the most effective way to create a healthy interdependence?
AC: I believe the separation of Chairman and CEO to be a best practice. If there is no separation then the figure of a Lead Director becomes very important. The Chairman or the Lead Director play a crucial role in coordinating the relationship between management and the Board.
LL: What needs to be done to make Boards more effective for the CEO's, but also for Customers and Employees of the...