The dimension of board management effectiveness of the board assessment process focuses on the board’s processes for managing the board’s agenda, meetings and distribution of written reports. It is essential to ensure that every item on the agenda is clearly defined obligations, timelines, and quantifiable outcomes.
Another important consideration is the board’s ability to comprehend and respond quickly to business-related risks and challenges. Whatever the issue, whether it’s shareholder activism, or cybersecurity, boards have to be flexible and adaptable in their approach to the changing threats.
Finally, the ability of the board to motivate and support the CEO and senior management is crucial in enabling them to carry out their responsibilities. A thorough review of the board’s performance can aid in reestablishing specific roles and objectives of the C-Suite and the board of directors in order to ensure that everyone works to achieve the same objective.
The board’s knowledge of business extends beyond what management tells them and includes their own research into suppliers, customers and other stakeholder behaviours and trends, as well as economic challenges and opportunities. Board members also visit locations and interact with management in informal ways between meetings, gaining direct information.
The board has an information management system that is well-defined and understood. It offers the necessary level of detail to make informed decisions. This could include a reporting system for the board and notice matrix that clearly identifies the matters that require oversight by the board (mission-critical) and those http://yourboardroom.net/ceo-vs-chairman-vs-president-responsibilities that don’t (management matters). Similarly, it might be useful to have a governance matrix that sets out the proper role for the board in relation to each of these areas.