Board analysis is an examination of the structure, composition, and operations of the board. Its purpose is to determine if the board has the appropriate balance of outside and inside knowledge as well as experience and objectivity to monitor and advise management and formulate a strategy. It also wants to determine how well the board functions as a unit and if it is supporting the CEO effectively and guiding the company’s growth.
The best boards are distinguished by a dynamic of trust, openness and collaboration. They have a good understanding of the organization’s ecosystem and they ask management important questions. They are focused on the long-term health of the company and can identify risks and opportunities. They collaborate with stakeholders to ensure the board understands their vested interest, and are able to pursue changes in corporate behavior and make an impact.
According to McKinsey’s global survey of more than 800 directors and executives, the best boards include a mix mitel phone system review of experienced non-executives (NEDs) and executives with a thorough understanding of the business. They have clearly defined structures and a set of policies that determine their decisions, and they are focused on improving the effectiveness of the board and its committees.
A board evaluation can be a useful tool to help a board evaluate its performance as well as provide feedback to the Chair and CEO. Not all boards have this as a top priority. Conducting an objective, third party evaluation could open the eyes board members to potential mistakes and help them change from good to great.