How Board Management Effectiveness Reviews Can Improve Board Performance
octubre 18, 2023
As a leader of your board, you’re responsible for the responsibility to make sure that your board members have the information they require to fulfill their duties and fulfill their obligations. That includes ensuring that the board is receiving the information it requires from management. This should ideally involve conducting periodic Board Effectiveness Reviews.
A thorough evaluation process can help the board gain perspective on a variety of issues that could hinder the board’s performance. They can range from easily addressed operational complaints, such as the length of meetings or the composition of agendas http://yourboardroom.net/ceo-vs-chairman-vs-president-responsibilities for board meetings, but also more difficult issues relating to the role of the board in strategic decision-making, and deficiencies in knowledge and expertise on the board. It can also highlight the need for new directors or changes of director assignments.
The board should be clear on the goals of its evaluation and should be the driving force behind the process – with the support of senior management who interact with the board regularly. The board should be able to discuss the results together and commit to addressing any issues that emerge.
A recent study based on nine years of self-evaluation information for boards from a leading Australian consulting firm that specializes in corporate governance services. They identified 11 reliable elements that contribute to the effectiveness of boards. Six of the factors corresponded specifically or mostly to Leblanc and Gillies’ (2005) «how» items, which reflect distinct process elements that influence how boards can operate effectively. These include effective meetings, internal communication, teamwork and leadership from the chair and efficient record keeping and information management.