The management effectiveness of the board dimension of the board assessment process is focused on the board’s procedures for managing the board’s agenda, meetings and distribution of written reports. It is crucial to ensure that every item on the agenda is clearly defined obligations, timelines, and measurable outcomes.
Another crucial aspect to consider is the ability of the board to understand and respond quickly to business-related risks and challenges. Boards must be flexible in http://yourboardroom.net/ceo-vs-chairman-vs-president-responsibilities their approach, no matter if it’s shareholder activism, or cyber-security.
The ability of the board to motivate and help the CEO and senior management is vital in enabling them to perform their daily duties. A thorough assessment of the board will assist in reestablishing specific roles and purposes of the C-Suite and the board of director so that everyone works in the direction of achieving the same goals.
The knowledge of Board members about the business is far beyond what they receive from the management. It also includes their own study of trends, economic headwinds, and customer, supplier and other stakeholder behaviour. Board members can also visit the websites and interact with management in a casual way during meetings to obtain firsthand information.
The board is well-organized and understands the information management system that has sufficient details to allow informed decision making. This could include a board reporting and notice matrix that clearly defines the issues that require board oversight (mission-critical) and those that do not (management matters). It could also be beneficial to create a governance framework that spells out the proper role for the board in each of these areas.