How Board Management Effectiveness Reviews Can Improve Board Performance

Published in 17 de outubro de 2023 by

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As a leader of a board, you have the obligation of ensuring that the board members have all the information they need to perform their roles and fulfill their obligations. This means that the board gets what it needs from the management. Ideally, that means conducting periodic Board Effectiveness Reviews.

A robust evaluation process can help the board gain perspective on a range of issues that could hinder board performance. They can range from simple operational complaints such as the length of meetings or the compositions of board agendas to more complex concerns regarding the board’s role and the gaps in knowledge and skills on the board. It could also indicate a need for new directors, or adjustments to director positions that are already in place.

The board should be clear on the objectives of the review and take the lead in the process, with help of senior managers that communicate with the board regularly. The board should decide to review the results in conjunction and resolve any issues that emerge.

A recent study which was based on nine years of board self-evaluation data from a renowned Australian consultancy specializing in corporate governance and survey services, revealed 11 reliable elements which contribute to the effectiveness of boards. Six of the factors were solely or primarily Leblanc and Gillies (2005) “how” item, indicating distinct methods for ensuring that boards be effective. These include effective meetings, internal communication teamwork as well as leadership from the chair, and efficient record-keeping and information management.