As the pace of business continues to increase, board management effectiveness is increasingly important. Boards must be able filter out the “known knowns” and focus on strategic imperatives that generate the long-term benefit of their companies and guide them toward their goals.
To do so, they need to have access to information that allows them to spot and check out this site respond to emerging risks quickly and effectively. They must also be able cultivate a culture of constructive disagreement and engage in candid conversations that challenge the majority’s views. To be able to do that, they must have the skills to sharpen their professional skepticism that is practical and develop the courage to raise red flags – both within the boardroom and with their company’s top executives.
Boards must also ensure they have effective processes in place for identifying new talent, attracting those who are qualified and effectively welcoming them into the fold. The board is an evolving organism and as directors retire they must be replaced with those who possess the appropriate mix of skills, experience and capabilities to meet the needs of the changing times of the business.
It’s important to have a process that ensures the decisions made in the boardroom reflect in the decisions taken by committees. This is usually where boards fall down because of a lack of clarity and an incongruous approach. An effective evaluation process will highlight these issues, and provide constructive feedback to directors, without focusing on any one specifically. This can assist the board in proactively addressing gaps in its leadership and ensure it is in a position to reach its strategic goals.