How Board Management Effectiveness Reviews Can Improve Board Performance

As the leader of a board, you have the responsibility of making sure that your board members are equipped with the information they require to fulfill their duties and responsibilities. This means ensuring that the board receives what it needs from the management. This should ideally involve conducting regular Board Effectiveness Reviews.

A thorough evaluation process can help the board gain an understanding of a range of issues that could be affecting board performance. These can vary from easy to address operational complaints, such as the length of meetings or the composition of agendas for board meetings, but also more complicated http://yourboardroom.net/ceo-vs-chairman-vs-president-responsibilities issues regarding the role of the board in making strategic decisions, and gaps in knowledge and competence on the board. It can also highlight the need for new directors, or changes to existing director assignments.

The board must be clear about the purpose of its evaluation, and it should drive the process with the support of senior managers who work with the board regularly. The board should agree to examine the results together and agree to address any issues that arise.

A recent study based on nine years of self-evaluation information for boards from a leading Australian consulting firm that specializes in corporate governance services. It revealed 11 trustworthy factors that contribute to board effectiveness. Six of the factors corresponded specifically or mostly to Leblanc and Gillies’ (2005) “how” items, which reflect distinct processes that determine how boards can function effectively. These include effective meetings, internal communication, teamwork and leadership from the chair, and efficient record-keeping and information management.