The management effectiveness of the board component of the board assessment process concentrates on the board’s processes for boardmaps software managing its agenda, meetings and distribution of its written reports. It’s important to make sure that there are clear roles with timelines and measurable outcomes for each item on the agenda of the board.
Another critical aspect is the capacity of the board to recognize and respond to business risks and challenges in a timely fashion. Whether it’s shareholder activism or cybersecurity, boards need to be flexible and adaptive in their approach to these ever-changing threats.
Finally, the ability of the board to inspire and support the CEO and the senior management team is crucial in enabling them to perform their responsibilities. A thorough review of the board’s performance can help to re-establish specific roles and objectives of the C-Suite, and the board of directors so that everyone works together towards the same goal.
The Board members’ knowledge of the business goes beyond what they learn from the management. It also includes their own studies of trends in economic headwinds, customer, supplier and other key stakeholder behaviors. Board members are also able to visit the websites and communicate with management in a casual and informal manner between meetings to gain direct information.
The board has an information management structure that is well-defined and understood. It provides the level of detail necessary to make informed decisions. This could include a matrices of board reports and notices that clearly defines the issues that require oversight by the board (mission crucial) and what matters do not (management issues). Additionally, it may be beneficial to create an organizational chart that spells the proper role of the board in relation to each of these areas.