The business environment and stakeholder priorities shift in subtle or seismic ways. In an environment that is constantly changing, effective governance is vital to the long-term success of a business. There is no one solution that will work for everyone but the most successful boards employ proven methods to evaluate, motivate and achieve board management efficiency.
These best practices include an established evaluation process, a culture of board development, as well as digital tools for efficiency and transparency. These tools and techniques can be used to assess the effectiveness of the board’s role as trustee and fiduciary for the company, while encouraging collaboration across all directors.
Conducting an assessment requires members of the board to put in their time and give honest feedback. Boards should agree at the outset on the objectives of the assessment and set aside time to discuss and align on these goals. Boards can also make use of a board portal to allow directors to communicate ideas and details and keep track of progress towards their goals.
A board’s structure and composition is a further area of consideration. This includes the size of a board, as well as the number of committees formed, as well as the often these committees meet. Ensure that committees are adequately sizeable to handle their work and that the primary focus of each one is historical and emerging long-term http://yourboardroom.net/ceo-vs-chairman-vs-president-responsibilities value drivers for the business.
The chair’s ability to facilitate productive board meetings and decision-making processes is also critical. This includes the chair’s communication and relationship-building skills with the board, other directors, and management. In addition, the chair should be willing to receive constructive feedback regarding the way they lead.
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