The effectiveness of the board’s management is a key aspect of good governance for boards. The effectiveness of a board depends on multiple aspects, including composition (the right balance of expertise and experience) as well as meeting efficiency and a atmosphere of open communication, and the ability to engage in real conversations, even tough ones. The more effective a board is, the better equipped it will be in setting strategic direction and challenge organisational performance.
The annual board self-assessment process can vary from a straightforward 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 help boards understand how their current practices are against best practice and can lead to a clear plan of action for areas in which more improvement is required.
A key to getting board management effectiveness is to create a culture of collaboration which allows directors to view themselves as collaborators and not adversaries. This can be accomplished by fostering board development and encouraging the refreshment of the Board. This includes the willingness to reconsider mandatory retirement schedules and terms limits.
Another method of increasing productivity between meetings is allowing directors to access and communicate with one another by using dedicated communication tools such as discussion boards and remote voting. This can cut down on the time-consuming face-to-face discussions and help to ensure that each action item and task are completed on schedule. Board members can spend less time working on administrative tasks, and more time directing changes.