As the leader of a board you have the responsibility of ensuring that your board members are equipped with the knowledge they need to fulfill their responsibilities and obligations. This includes ensuring the board receives the information it needs from the management. In the ideal scenario, this means conducting regular Board Effectiveness Reviews.
A thorough evaluation process can help the board gain a better understanding of a range of problems that could be hindering the performance of the board. These can range from simple operational concerns, like the length of meetings or the composition of board agendas, to more complex issues related to the role of the board in strategic decision-making, and gaps in knowledge and competence on the board. They can also chairman vs ceo point out the need for new directors or changes of director assignments.
The board must be clear about the objectives of its evaluation and should be the driving force behind the process – with the support of senior managers who communicate with the board regularly. The board should decide to review the results in conjunction and resolve any issues that emerge.
A recent study based on 9 years of board self-evaluation data from a leading Australian consulting firm specializing in corporate governance services yielded 11 reliable factors that are essential to board effectiveness. Six of these factors correlated solely or primarily to Leblanc and Gillies’ (2005) “how” items, which reflect distinct process elements that influence how boards function effectively. These include effective meetings, internal communications teamwork as well as leadership from the chair, and efficient record-keeping as well as information management.