The business environment and stakeholder priorities change in subtle and profound ways. In this dynamic board context, effective governance is crucial for the long-term viability of a company. Although there isn’t any one-size-fits all solution the most effective boards use proven strategies to measure, drive and increase the effectiveness of board management.
These best practices include an established evaluation process as well as a culture of board development, and digital tools for efficiency and transparency. These tools and techniques help evaluate the effectiveness of the board’s role as trustee, fiduciary, and representative for the company. They also promote collaboration among directors.
Conducting an assessment requires board members to dedicate their time and provide honest feedback. Boards should set out their goals and discuss them prior to the start of the process. Boards can also make use of a board portal to make it easier for directors to communicate ideas and details and keep track of progress towards their goals.
Another important aspect to consider is the structure and composition of the board. This includes the size and composition of the board, the amount of established committees as well as the frequency at which often they meet. It is important to ensure that committees are sizeable to handle their work and that the primary focus of each one is longer-term value drivers for the business.
It is also important that the chair is able to facilitate productive discussions and decision-making processes. This includes the chair’s communication and relationship-building skills with the board, other directors, and management. The chair should also be able to accept constructive criticism about his or their leadership.
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