Effective board management requires that directors take their responsibilities seriously, be committed to the process, and continuously strive to improve. It also requires a solid infrastructure to allow the board to do its best work and accelerates the work of board members as well as the management team. This includes the tools, processes and systems in place for the planning of meetings, materials development and management of portals, logistics and communications.
The most efficient boards perform a thorough analysis of risk-based drivers and mission-critical drivers, and are focused on the involvement of the key stakeholders. This includes requesting reports on suppliers, customers, and other key stakeholder behaviors and trends as well as economic headwinds and opportunities. This means going out into the field to observe how the company operates firsthand. Then, bringing these insights back to the board for discussion.
Most important to this pillar are the foundational trust and respect that must exist among board members to facilitate a productive discussion and debate, including challenging viewpoints and questions. It is also crucial to create a climate in which it is acceptable and expected that the board may disagree with www.boardroomevent.com/5-best-practices-for-effective-board-management/ management.
The capacity of the board to perform its job is dependent on the quality and accessibility of information. 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 map of authority (sometimes called a RACI Map) that clearly determines who is responsible and accountable, as well as consultative or informed about specific issues and when these roles and responsibilities have been fulfilled.