The component of board management effectiveness of the board assessment process is focused on the board’s processes for managing its agenda, meetings and distribution of its written report. It is important to ensure that every item on the agenda is clearly defined obligations, timelines, and quantifiable results.
Another aspect to consider is the ability of the board to understand and respond quickly to business challenges and risks. Boards must be flexible in their approach, no matter if it’s shareholder activism or cyber-security.
The ability of the board to help and motivate the CEO and senior management team is vital in enabling them to fulfill their day-to- task. A thorough board evaluation can help in reestablishing the precise role and purpose of the C-Suite and the board of directors so that everyone is working together toward the same goal.
The Board members’ understanding of the business extends beyond what they are told by the management. It also includes their own research into trends, economic headwinds, and suppliers, customers, and other key stakeholder behaviors. Board members also visit sites and interact with management in informal interactions during meetings to gather firsthand information.
The board has a well-defined and check out this site well-understood information management structure that is at sufficient details that allows for informed decision-making. This could include a board reporting and notice matrix that clearly defines matters that require oversight by the board (mission-critical) and those that don’t (management matters). Additionally, it may be beneficial to have an organizational chart that spells out the appropriate role for the board in each of these areas.