The effectiveness of the board’s management is a crucial aspect of good governance for boards. The effectiveness of a board is based on several dimensions which include composition (the right balance of skills and experience) efficient meeting, the environment of open communication and helpful resources the ability to engage in actual conversations, even the tough ones. The more efficient a board is, the more capable it will be of setting the direction for the organization and challenge its performance.
The annual board self-assessment process can vary from a straightforward questionnaire to an interview conducted by a third party. This can provide insight into the board dynamics and the level of maturity. These assessments can help boards to assess how they compare to the best practices and come up with an action plan in areas that need improvement.
The key to improving the effectiveness of board management is to create a culture of collaboration which allows directors to view themselves as collaborators and not adversaries. This can be accomplished through board development and encouraging the refreshment of the Board, such as a willingness for them to consider reconsidering mandatory retirement schedules and the length of their term limits.
Another method of increasing efficiency between meetings is to allowing directors to communicate with one another using specialized communication tools, like discussion boards and remote voting. This can reduce the need for lengthy face-to-face discussions and help to ensure that every action item and task are completed in a timely manner. In the end, board members can spend less time on administrative work and spend more time implementing change.