The effectiveness of the board’s management is a critical element in board governance. The effectiveness of a board is determined by several factors, including its composition (the appropriate mix of abilities and experiences), the efficiency of meetings, the culture of open communications and the willingness to participate in real-time conversations particularly difficult ones. The more effective a board is, the more capable it will be at setting the strategic direction and challenge organizational performance.
The annual self-assessment procedure for board members can range from a simple questionnaire to an interview conducted by a third party. This could provide insights into the dynamics of the board and the level of maturity. These assessments aid boards in understanding how their current practices compare against the best practices, and can lead to a clear plan of action in areas where further improvement is required.
The crucial element to ensuring the effectiveness of management on the board is to create a environment where directors view themselves as collaborators and not adversaries. This can be achieved through the development of the Board and the renewal of the Board. This includes an openness to review mandatory retirement schedules and time limits.
Another way to drive efficiency between meetings is to allowing directors to share information with one another using specialized communication tools, such as discussion boards and remote voting. This can reduce the time-consuming face-toface discussions and also help ensure that all action items and tasks are completed on schedule. As a result, board members spend less time on admin and more time driving changes.