An Eye on the Future—And a Nod to the Past
from November/December 2007
Tell us the most important subject on your board's agenda for the coming year.
Long-range planning, long-range planning, and oh, yes long-range planning.
Strategic issues. Not the day-to-day issues that arise in a company, but the long-term strategic planning for the future.
J. Terry Strange, 63
Former Vice Chairman, KPMG LLP,
Montvale, New Jersey
Outside directorships: BearingPoint Inc., Compass Bancshares Inc., Group I Automotive Inc., New Field Exploration Co., New Jersey Resources Corp.
We have a rather complicated situation with Multi-Fineline Electronix. In March of last year, we announced our intention to acquire another company. They’re in Singapore. It looked like a great deal but has turned into a disaster. We have announced that we’re opposed to the transaction, but we can’t just cancel it because you can’t do that in Singapore. It looks like it will go through—so we have to figure out how we’ll integrate these two companies to the best of our ability.
Sanford L. Kane, 65
President, Kane Concepts Inc.,
New City, New York
Multi-Fineline Electronix
Succession planning is a continuous discussion around our board table. We work very hard on managing our talent pool, and one of the tactical ways we do that is, we have board dinners and invite the next tier of leaders. We have potential candidates in mind for our next CEO.
Phyllis A. Domm, 60
CEO, SolutionsM2, Stuart, Florida
Equitable Resources Inc.
On one of my boards we’ve gone through stock-option accounting issues, so we’ve fallen under the gaze of the Securities and Exchange Commission. We’re working hard to relist the company, and to refile financial statements and regain investor confidence.
Thomas C. Wajnert, 64
Former Chairman and CEO, AT&T Capital, Morristown, New Jersey
Nyfix Inc., Reynolds American, UDR Inc.
It’s always long-range planning. Board education is also high on the agenda today. We pay attention to questions like, what have you done to enhance your education? How are you keeping current? Have you gone to conferences or seminars? Are you exchanging information with other board members? All of those are healthy questions.
Kay S. Jorgensen, 56
Owner and CEO, KSJ Enterprises,
Spearfish, South Dakota
Black Hills Corp.
The business plan and changing business environment, and the ability to execute and innovate—those are the most important subjects. All companies are having to address these things. The way you did it last year is probably not good enough this year.
Archie Clemins, 63
Owner and President, Caribou Technologies, Boise, Idaho
Global Crossing
What is your toughest task as a director? How has this changed during the past five years?
It used to be fighting the impulse to micromanage. Today it ranges from audit oversight to finding a level playting field with China.
We’re doing succession planning at one company, and it is a very challenging task. We’re dealing with the departure of the CEO and his wishes to have that be the most important issue for the board, and we’re dealing with candidates for the job who would like to believe they are the most important issue for the board. We’re also dealing with senior executives who all believe their careers and interests and importance to the company are the board’s top priority.
Donald C. Wegmiller, 69
Former Chairman, Clark & Wamberg Healthcare Group, Minneapolis
Omnicell Inc., Possis Medical Inc.
Five years ago I would have told you the toughest task was adhering to the idea that directors direct and managers manage, and making sure I wasn’t drawn into acting as a manager but was simply providing oversight and support as a director should. Today it’s avoiding overemphasis on the governance-oversight rules that directors are compelled to provide. I’m chair of the audit committee on two boards, and that’s a role where you can really get yourself wrapped around the governance axle. There are an awful lot of boxes that need to be checked, and I spend a lot of time trying to mentor and support the CFO and the entire financial organization because they’re under monumental pressure as a result of these regulations.
Lee Level, 66
Former CFO, Computer Sciences Corp.,
El Segundo, California
Allied Waste Industries Inc., Levi Strauss & Co., UTi Worldwide Inc.
The growth of the Chinese economy comes up with some frequency these days and is nettlesome. How do you market your products to the Chinese domestic industry? They’re interested in low prices, not as much in high quality, and if you’re a high-quality seller how do you connect with them?
Jack W. Eugster, 62
Former Chairman and CEO, MusicLand Stores Corp., Minneapolis
Black Hills Corp., Donaldson Corp., Graco Corp.
By far our toughest task is determining the kind of growth we want in Asia. The statistics are overwhelming—50% of global GNP will be coming out of Asia in the coming years. This has definitely changed in the last five years. I started going to India and China over 30 years ago, and then we mostly looked to those countries for cheap manufacturing and outsourcing. That’s an incredible difference from dealing with a global leader.
Jerre L. Stead, 64
Chairman and CEO, IHS Inc.,
Englewood, Colorado
Brightpoint Inc., Conexant Systems Inc., Mindspeed Technologies Inc.
