As the leader of your board you have the responsibility of making sure your board members have the information they require to fulfill their responsibilities and responsibilities. This means ensuring that your board is receiving the information it requires from management. Ideally, that means conducting periodic Board yourboardroom.net Effectiveness Reviews.
A thorough process for evaluating the board will assist the board to gain a better understanding of a range of issues that could be hindering board performance. They can range from simple operational complaints like the length of meetings and the composition of agendas for board meetings to more complex concerns about the role of the board as well as the gaps in knowledge and skills on the board. This can also indicate the need for new directors or adjustments in director assignments already in place.
The board must be clear about the purpose of its assessment and should lead the process – with the support of senior managers who communicate with the board regularly. The board should be able to discuss the results in conjunction and take action to address any issues that emerge.
A recent study based on nine years of board self-evaluation data from a prominent Australian consulting firm that specializes in survey research and corporate governance services. The study revealed 11 trustworthy factors that contribute to the effectiveness of the board. Six of these factors correlated exclusively or predominantly to Leblanc and Gillies’ (2005) “how” items, reflecting discrete process factors for how boards can operate effectively. These include teamwork and communication within the board and the leadership of the chair, committee leadership, effective meetings, self-assessment by the board, and efficient record-keeping and information management.