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TheFinancialReview

National Agenda

Company directors need “entrepreneurial spirit”, fast decision-making

AFR BOSS Magazine lists the lessons that directors on publicly listed boards could learn from the private sector, including an ability to move more quickly with a more long-term view.  

  • Private equity-owned companies benefit from analysing the company or market structure and responding quickly, while public companies tend to have much longer timeframes for decision-making.  
  • Aversion to risk-taking seems to be holding public companies back, limiting the potential for entrepreneurialism.  
  • Another lesson is creating an environment where directors feel free to put forward ideas that might be considered outside the box. 

Takeout

Some experts argue that one of the key problems facing directors of public companies is that they don’t understand their goal, are too slow to make decisions and are risk-adverse to the extreme. Can the public sector look to their privately-owned cousins for inspiration?  

Source: Australian Financial Review - Companies need board directors with entrepreneurial spirit