Sending the Board Back to School

(page 2 of 2)

A similar executive education program for nonfinance executives is also offered. These programs focus solely on accounting and financial reporting in this new era of heightened scrutiny.

"Without the numbers, directors can't ask the right questions," says Grant Ackerman, associate dean of executive education and professor of management at Columbia. One part of the program involves participants going over the financial reports of their companies searching for red flags and determining appropriate questions and action.

In the spring, Wharton at the University of Pennsylvania will be debuting a new course for first-time corporate directors. It will build on previous executive education programs that the school has offered over the last 10 years, but this time the focus will be on training freshmen directors. Coursework during the three- to four-day program (participants with little finance knowledge can opt for a fourth day of class focusing on accounting and finances) features everything from learning how to properly read a balance sheet to determining ethical obligations. Wharton has also recently begun to offer similar programs to participants in China and India.

Ethical Obligation

Placing its attention on first-time directors and those in emerging markets allows Wharton to add value by meeting the needs of groups that weren't getting enough attention, says Michael Useem, professor of management and director of the Wharton Center for Leadership and Change. He adds that in light of the state of affairs in today's business world, educators have an obligation to teach directors and have an impact on the world outside of academia. "The key is that directors leave [the course] feeling as though they're in the driver's seat when it comes to key decisions," he says. "They need to know how to make conclusions without micromanaging."

These executive education courses are helping to professionalize the role of corporate director. Some, including Newton Margulies, director of executive education at University of California-Irvine's Paul Merage School of Business, say that the day might even come when directors will have to have some sort of certification to be considered for the job. In the meantime, directors have to adjust to the quickly changing landscape.

Di Meglio is a reporter for BusinessWeek Online in Fort Lee, N.J.