The board management effectiveness component of the board assessment process concentrates on the board’s processes for managing its agenda, meetings and distribution of its written reports. It is important to ensure that each item on the agenda is clearly defined expectations, timelines and measurable outcomes.
Another important aspect to consider is the capacity more tips here of the board to recognize and respond to business risks and challenges in a timely manner. Whether it’s shareholder activism or cybersecurity, boards have to be flexible and adaptable in their approach to the changing threats.
The ability of the board to motivate and assist the CEO and senior management is vital in enabling them to perform their responsibilities. A thorough review of the board’s performance can assist in reestablishing specific roles and responsibilities of the C-Suite, and the board of directors to ensure that everyone is working to achieve the same objective.
The Board members’ understanding of the business is far beyond what they receive from the management. It also includes their own research into trends that affect the economy, as well as supplier, customer, and other key stakeholder behavior. Board members also visit companies and interact with management in informal ways between meetings, gaining direct information.
The board has an information management structure that is well-developed and well-understood. It offers the level of detail needed to make informed decisions. This could include a matrix of board reporting and notices that clearly define what issues require oversight by the board (mission vital) and what matters do not (management issues). In addition, it could be beneficial to have an organizational chart that spells the proper role of the board in each of these areas.