The effectiveness of the board’s management aspect of the assessment process for boards focuses on the board’s processes to manage the agenda of the board meetings, and the look at this website distribution of written reports. It is crucial to ensure that there is a clear definition of responsibilities as well as timelines and quantifiable outcomes for each item on the board’s agenda.
Another key consideration is the capacity of the board to recognize and respond to business risks and problems in a timely way. Boards need to be flexible in their approach, whether it’s shareholder activism or cyber-security.
Finally, the ability of the board to motivate and help the CEO and senior management is essential in allowing them to fulfill their duties. A thorough assessment of the board will aid in reestablishing specific roles and responsibilities of the C-Suite, and the board of directors to ensure that everyone is working in the direction of achieving the same goals.
The board’s knowledge of the business extends beyond what management says to them and includes their own research into supplier, customer and other stakeholder behaviours and trends as well as economic headwinds and opportunities. Board members are also able to visit the sites and interact with management in a casual manner between meetings to get direct information.
The board has an information management system that is well-defined and understood. It also provides the level of detail needed to make informed decisions. This could include a board reporting and notice matrix that clearly defines the issues that require board oversight (mission-critical) and matters that do not (management matters). Additionally, it may be beneficial to create a governance matrix that spells out the appropriate role for the board in each of these areas.