Board management effectiveness becomes increasingly crucial as the pace of business increases. Boards must be able to to separate the « known unknowns » from the strategic imperatives that create the long-term success of their companies, and steer companies towards their objectives.
In order to do this, they need to have access to data that will allow them to identify and address emerging threats quickly and efficiently. In addition, they must be able to create a culture of constructive discord and engage in candid debates that challenge the views of the majority. To be able to do that they must possess the ability to refine their practical professional skepticism and have the courage to raise red flags – both in the boardroom and with company leaders.
Boards should also have procedures in place to find new talent, then recruit those who are interested and integrate them into the team. The board is like an organism that evolves and when directors leave they need to be replaced with those who have the proper mix of experience, abilities and skills to meet the ever-changing demands.
In addition, it is essential to have a procedure that ensures http://yourboardroom.net/ceo-vs-chairman-vs-president-responsibilities decisions made in the boardroom reflect in action taken by the committees. This is where boards frequently fail due to a lack in clarity and a disjointed method. An effective evaluation process will identify these issues and provide constructive feedback to directors individually without focusing on any one in particular. This will help the board to proactively address the leadership gap and ensure that it is in a position to reach its strategic goals.