At GE, Immelt relies on the board to take the pulse of the company, to gauge whether the business is humming along smoothly or there are glitches that need attention. âI asked each of our directors to visit the GE businesses twice a year,â he says. âYouâre never going to know the intricacies of this company. Thereâs too much mass. But you can get a feel of the culture. So when they go to GE Aircraft Engines or GE Medical Systems, I want them by themselves [without corporate management], so they can make their own assessments - maybe weâre pushing too hard or maybe weâre not pushing hard enough.â
At The Home Depot, all directors were required to visit eighteen stores every year and spend two hours on each visit speaking with employees and customers. When he became CEO in 2000, Bob Nardelli continued that tradition and enhanced it: âI pair two board members with every division president and every functional leader for a full day. I look for their advice and counsel. These are CEOs and experienced men and women in their own right. I took advantage of their experience. Rather than being intimidated by it, I reached out and said, 'You go in and assess, give me your view of the individuals and their staffs.â So the board is helpful.