The effectiveness of the board’s management aspect of the assessment process for boards is focused on the board’s procedures for managing the board’s agenda meetings, agendas and distribution of written reports. It is important to ensure that there are clear roles with timelines and measurable outcomes for each item on the board’s agenda.
Another crucial aspect to consider is the board’s ability recognize and react quickly to business challenges and risks. Be it 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 inspire and support the CEO and senior management is crucial in enabling them to carry out their daily duties. A thorough board evaluation can aid in reestablishing the specific goals and functions of the C-Suite and the board of directors, so that everyone is working together to achieve the same objectives.
The Board members’ knowledge of the business extends beyond what they learn from the management. It also includes their own studies of trends in economic headwinds, supplier, customer and other important stakeholder behavior. Board members are also able to visit the websites and engage with management in a casual and informal manner between meetings, to get firsthand information.
The board has an information management structure that is well-developed and well-understood. It provides the level of yourboardroom.net detail needed 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 that don’t (management issues). A governance matrix that clarifies the board’s role in each of these areas could be helpful.
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