The management effectiveness of the board dimension of the board assessment process examines the processes used by the board to manage the agenda of the board meetings, agendas and distribution of written reports. It is important to ensure that every item on the agenda is clearly defined expectations, timelines and measurable results.
Another crucial aspect to consider is the ability of the board to understand and respond quickly to business-related risks and challenges. Whatever the issue, whether it’s shareholder activism, or cybersecurity, boards have to be flexible and adaptable in their approach to these evolving threats.
Finally, the ability of the board to support and encourage the CEO and executive management team is essential in allowing them to perform their day to task. A thorough assessment of the board’s performance could help in reestablishing the precise role and purpose of the C-Suite and the board of directors so that everyone is working together towards the same goals.
The Board members’ knowledge of the business extends beyond what they learn from the management. It also includes their own research into the latest trends in economic headwinds, suppliers, customers and other key stakeholder behaviour. Board members can also visit the sites and interact with management in a casual way between meetings, to get direct information.
The board has a well-defined and well-understood information management framework that has sufficient detail that allows for informed decision-making. This could include a list of board reports and notices which clearly defines what areas require board oversight (mission vital) and what does not (management issues). It could also be useful to have a governance matrix that sets the proper role of the board in relation to each of these areas.