The dimension of board management effectiveness of the assessment process for boards examines the board’s processes for managing the board’s agenda meetings, as well as the distribution of written reports. It is essential to ensure that each item on the agenda is clearly defined expectations, timelines and quantifiable results.
Another aspect to consider is the board’s ability to understand and respond quickly to business challenges and risks. Boards need to be flexible in their approach, no matter if it’s shareholder activism or cyber security.
In addition, the capacity of the board to assist and inspire the CEO and senior management team is vital in allowing them to complete their day to job responsibilities. A thorough assessment of the board will help to re-establish specific roles and responsibilities of the C-Suite, and the board of director so that everyone works together to achieve the same objective.
The board’s knowledge of the business extends beyond what management tells them and includes their own research into suppliers, customers and other key stakeholder interactions as well as economic headwinds and opportunities. Board members can also visit the websites and communicate with management in a casual way between meetings to get direct information.
The board has an information management structure that is well-defined, understood and provides the necessary level of detail to make informed decisions. This could include a list of board reporting and notices which clearly defines what areas require oversight by the board (mission essential) and what matters do not (management issues). A governance matrix that outlines the role of the board in each of these areas would be useful.