Board management effectiveness is an important element of good governance for boards. The effectiveness of a board’s management is based on a variety of factors that include composition (the appropriate balance of abilities and experience), meeting efficiency as well as the culture of open communication and the willingness to have real conversations, even the most difficult ones. The more effective a board is, the more capable it will be at setting the strategic direction and challenge organizational performance.
The annual self-assessment procedure for board members could range from a simple questionnaire to an interview conducted by a third-party. This could provide insights into the board dynamics and maturity levels. These assessments can help boards understand how their current practices are against best practices and could help them develop a clear course of action for areas in which further improvement is required.
The most important factor in the effectiveness of board management is to create a collaborative culture that allows directors to see themselves as partners, not adversaries. This can be accomplished through the development of the Board and the renewal of the Board, which includes the willingness to reconsider mandatory retirement schedules and time limits.
Another method to increase efficiency between meetings is to allowing directors access to and communicate with one another via dedicated communication tools such as discussion boards and remote voting. This can reduce the necessity for lengthy face-to-face meetings and ensure that all tasks and action items are completed within the timeframes set by the board. As a result, board members will spend less time managing and spend more time implementing changes.