Effectiveness of management at the board level is a critical element in board governance. The effectiveness of a board is based on a number of aspects which include composition (the proper balance of skills and experience) efficient meeting, the environment of open communication and the willingness to have real conversations, even the most difficult ones. The more effective a Board’s performance in its ability to determine the strategic direction and challenge the performance of the organization.
The annual self-assessment procedure for board members can range from a simple questionnaire to an interview conducted by a third party. This will provide insight into the dynamics of the board and maturity level. These assessments assist boards in understanding how their current practices compare against best practice and can result in a clear plan of action for areas where further improvement is needed.
A key element to improving the effectiveness of board management is to establish a culture of cooperation which allows directors to view themselves as collaborators and not as adversaries. This can be accomplished through board development and promoting the refreshment of the Board, including the willingness to reconsider mandatory retirement schedules as well as the length of their term limits.
Another way to drive productivity between meetings is by allowing directors access to and share information with each other by using dedicated communication tools such as discussion boards and remote voting. This can help reduce the need for lengthy meetings in person and also ensure that every action item and task are completed on time. This means that board members spend less time in administrative tasks and more time driving changes.