Board management effectiveness is a crucial aspect of board governance. The effectiveness of a board is determined by several aspects such as its composition (the appropriate mix of expertise and experience) as well as the effectiveness of meetings as well as the culture of open communications and the capacity to engage in real-time discussions, especially difficult ones. The more effective a board is and the more efficient it is to determine the strategic direction and challenge the performance of an organisation.
The annual self-assessment process for boards ranges from a simple director questionnaire to an extensive interviewing process, usually conducted by a third-party, that can provide insights into the dynamics of the board as well as the overall level of maturity of the board. These assessments can help boards assess how they compare to best practices and formulate strategies for improvement to improve their performance in certain areas.
A key to getting board management effectiveness is to create a culture of collaboration that allows directors to see themselves as collaborators and not as adversaries. This can be promoted through training for board development and through encouraging a refreshment of the board, such as a willingness to reconsider the mandatory retirement schedules, or term limits.
Another method to increase productivity between meetings is by allowing directors to communicate with one another via dedicated communication tools like discussion boards and remote voting. This can cut down on the necessity for lengthy face-to-face meetings and ensure that each action item and task are completed on time. Board members can spend less time working on administrative tasks, and more time directing changes.
