The management effectiveness of the board dimension of the assessment process for boards examines the board’s processes to manage the agenda of the board, meetings and distribution of written reports. It is important to ensure that every item on the agenda is accompanied by clear responsibilities, timelines, and quantifiable results.
Another aspect to consider is the board’s ability comprehend and respond quickly to business risks and challenges. Whatever the issue, whether it’s shareholder activism, or cybersecurity, boards must to be flexible and adaptable in their approach to these ever-changing threats.
In addition, the capacity of the board members to support and inspire the CEO as well as the executive management team is essential in enabling them to carry out their day to daily tasks. A thorough evaluation of the board can aid in reestablishing the exact role and purpose of the C-Suite and the board of directors, so that everyone is working to achieve the same goals.
Board members’ knowledge of the business goes beyond what they are told by the management. They also conduct their own study of trends in economic headwinds, supplier, customer and other key stakeholder behaviors. Board members can also visit the websites and communicate with management in a casual fashion between meetings, to get firsthand information.
The board has an information management structure that is well-developed, understood and offers the necessary level of detail to make informed decisions. This could include a board reporting and notice matrix that clearly defines matters that require board oversight (mission-critical) and matters that do not (management matters). It could also be beneficial to create a governance matrix that spells out the appropriate role for the board in each of these areas.
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