The board management effectiveness dimension of the board assessment process examines the board’s processes to manage the agenda of the board meetings, agendas and distribution of written reports. It is important to ensure that there clearly defined responsibilities, timelines and measurable outcomes for every item on the agenda.
Another important aspect to consider is the capacity of the board to recognize and respond to business risks and issues in a timely manner. Boards need to be flexible in their approach, whether it’s shareholder activism or cyber-security.
In the end, the ability of the board to motivate and support the CEO and senior management is essential in enabling them to perform their duties. A thorough evaluation of the board can aid in reestablishing the specific objectives and roles of the C-Suite and the board of directors so that everyone is working toward the same goal.
The Board members’ understanding of the business is far beyond what they learn from the management. It also includes their own studies of trends and economic headwinds as well as suppliers, customers and other key stakeholder behaviors. Board members are also able to visit the sites and interact with management in a casual way during meetings to obtain firsthand information.
The board has a well-developed and well-understood information management system that has the right level of detail yourboardroom.net to enable informed decision-making. This could include a matrices of board reports and notifications that clearly defines what matters require oversight by the board (mission critical) and which do not (management issues). A governance matrix that clarifies the board’s role in each of these areas could be beneficial.
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