Effective board management requires directors to be committed to their responsibilities, commit to the process and work to improve. It also demands a strong infrastructure for support that allows the board to perform its best work and accelerates the effort of board members and the management team. This includes the governance processes, systems and tools that are in place for meetings planning, creation of materials, portal management, and logistics.
The most effective boards are marked by a thorough ongoing analysis of material, mission-critical drivers as well as opportunities and risks, and an emphasis on key stakeholder involvement. This includes requesting reports on customer, supplier and other stakeholder interactions and trends, as well as opportunities and headwinds in the economy. It also involves going out into the field to observe how the company operates and bringing the findings back for discussion with the board.
The most important aspect of this pillar is the underlying trust and respect that has to be maintained between board members to allow for high-quality discussion and debate, which includes challenging questions and viewpoints. It also requires a setting where it is accepted and even expected that the board members will not agree with management.
The quality and accessibility of information is crucial for a board’s ability effectively perform its tasks. The most effective boards can make informed decisions when their information infrastructure is aligned to the vision of the board engagement model, engagement model, and mission. This includes an explicit https://boardroomevent.com/finding-the-balance-between-board-and-management/ matrix of authority (sometimes referred to as a RACI Map) that clearly specifies who is responsible for, accountable, consultative or knowledgeable about specific subjects and when these roles and duties have been fulfilled.