The management effectiveness of the board dimension of the assessment process for boards is focused on the board’s procedures to manage the agenda of the board, meetings and distribution of written reports. It is crucial to ensure that there clearly defined responsibilities and timelines, as well as measurable results for each item on the board’s agenda.
Another crucial aspect is the ability of the board members to comprehend and respond to business risks and challenges in a timely fashion. Boards must be flexible in their approach, whether it’s shareholder activism, or cyber-security.
In the end, the ability of the board to motivate and help the CEO and the senior management team is crucial in enabling them carry out their responsibilities. A thorough board evaluation can help in reestablishing the precise purpose 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 company extends beyond what they are told by the management. It also includes their own research into the latest trends and economic headwinds as well as suppliers, customers and other important stakeholder behaviour. Board members also visit locations and interact with management in informal interactions between meetings to get firsthand information.
The board has an information management system that is well-defined, understood and provides the necessary level of detail to more tips here make informed decisions. This could include a list of board reports and notices that clearly define what issues require oversight by the board (mission critical) and what does not (management issues). A governance framework that outlines the board’s role in each of these areas would be helpful.
