The Board Management Effectiveness Dimension of the Board Evaluation

The component of board management effectiveness of the board assessment process is primarily focused on the board’s procedures for managing its agenda, meetings and distribution of its written reports. It is important to ensure that there are clear responsibilities as well as timelines and quantifiable outcomes for each item on the board’s agenda.

Another crucial aspect to consider is the ability of the board to comprehend and respond quickly to business-related risks and challenges. Boards need to be flexible in their approach, no matter if it’s shareholder activism, or cyber-security.

Finally, the ability of the board to support and inspire the CEO and top management team is crucial in helping them carry out their day to daily tasks. A thorough assessment of the board can assist in reestablishing specific roles and purposes of the C-Suite, and the board of directors so that everyone works to achieve the same goal.

The board’s understanding of business extends beyond the information they receive from management and includes their own research on customer, supplier and other key stakeholder behavior as well as economic challenges and opportunities. Board members also visit locations and interact with management in informal ways between meetings, gaining firsthand knowledge.

The board is well-organized and understands the information management structure with the right level of detail to permit informed decision-making. This could include a list of board reports and notices that clearly defines what matters require board oversight (mission vital) and what does not (management issues). A governance matrix that defines the role of the board in each of these areas could be beneficial.

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