Effectiveness of management at the board level is a crucial aspect of board governance. The effectiveness of a board is determined by many aspects such as its composition (the appropriate mix of expertise and experience) and the effectiveness of meetings and the culture of open communications, and the willingness to participate in real-time conversations, especially difficult ones. The more effective a Board’s performance and the more efficient it is to determine strategic direction and test the performance of an organization.
The annual self-assessment procedure for board members can range from a basic questionnaire to an interview conducted by a third-party. This can provide insight into the dynamics of the board and the level of maturity. These assessments can help boards understand how their current practices compare against best practices and can help them develop a clear course of action for areas where more improvement is required.
A key to improving the effectiveness of board management is establishing a culture of collaboration which allows directors to view themselves as collaborators, not adversaries. This can be accomplished through board development and encouraging the renewal of the Board, such as the willingness to reconsider mandatory retirement schedules and time limits.
Another method to increase productivity between meetings is allowing directors to access and communicate with one another using specialized communication tools, like discussion boards or remote voting. This will reduce the need for lengthy face-to-face discussions and help to ensure that every action item and task are completed in a timely manner. This means that board members spend less time in administrative tasks and spend more time driving changes.
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