The business environment and stakeholder priorities shift in subtle or dramatic ways. In this dynamic board environment, effective governance is essential for the long-term viability of a company. There isn’t a single solution that works for all however, the most effective boards employ proven methods to assess, drive and achieve board management efficiency.
These best practices include an established evaluation process as well as a culture of board development, and the use of digital tools for efficiency and transparency. These tools and techniques will help to evaluate the effectiveness of the board’s role as trustee and fiduciary for the business, while also encouraging collaboration across all directors.
Board members should commit their time and energy to the assessment and give honest feedback. Boards must define their goals and discuss them at the beginning. Boards can make use of a portal for directors to easily share information and ideas, and monitor progress towards goals.
A board’s structure and composition is a different area of consideration. This includes the size of a board as well as the number of committees formed, as well as the frequently those committees meet. Ensure that committees are adequately equipped to handle their workload and that the primary focus of each is on the current and future value drivers for the business.
The chair’s ability to facilitate productive board meetings and decision-making processes is critical. This includes the chair’s communication and relationship-building skills with the board, other directors, and management. In addition, the chair should be open to constructive feedback on his or her leadership style.
