Director Rotation

An old term you might want to know: "fish rots from the head down." This means that leadership is to blame for company failures.

To prevent stagnation and “internal rot,” many companies put mandatory director rotation into their bylaws. Think: term limits for board members.

The goal is to keep the pond well stocked with fresh new-perspective-seeking fish—and new ideas. No one gets too comfortable, and the ship keeps moving forward. Although...what a ship is doing in a pond, we have no idea.