The management effectiveness of the board dimension of the board assessment process focuses on the board’s processes for managing the board’s agenda meetings, agendas and distribution of written reports. It is crucial to ensure that every item on the agenda is clearly defined expectations, timelines and measurable outcomes.
Another critical aspect is the board’s ability to comprehend and respond quickly to risks and business challenges. Boards need to be flexible in their approach, whether it’s shareholder activism, or cyber-security.
Finaly, the board’s ability to motivate and help the CEO and senior management is crucial in allowing them to fulfill their responsibilities. A thorough review of the board’s performance can aid in reestablishing the specific roles and functions of the C-Suite and the board of director to ensure that everyone is working in the direction of achieving the same goals.
The board’s understanding of business goes beyond what they hear from management and includes their own research into suppliers, customers and other key stakeholder interactions and trends, as well as economic challenges and opportunities. Board members can also visit the websites and interact with management in a casual fashion between meetings to get firsthand information.
The board has a well-developed and well-understood information management structure with the right level of detail to permit informed decision-making. This could include a report to the board and notice check out this site matrix that clearly identifies matters that require oversight by the board (mission-critical) and those that don’t (management issues). A governance framework that outlines the role of the board in each of these areas could be useful.
