Effective board management requires directors to take their responsibilities very serious, commit themselves to the process, and continuously strive to improve. It also requires a robust infrastructure for support that allows the board to do its best and enhances the work of board members and the management team. This includes the governance systems, processes, and tools in place for meeting planning, material creation, portal management, and logistics.
The most effective boards are defined by a continuous study of important, mission-critical drivers risk and opportunities as well as a focus on the key stakeholder engagement. This includes requesting reports on suppliers, customers, and other key stakeholders’ behavior and trends. Also, it is about economic headwinds and opportunities. This means going out into the field and seeing how the business operates in person. Then, bring these findings back to the board to discuss.
This pillar is built on the trust and respect between board members, which need to be in place to allow high-quality debates and discussions. It also requires a setting where it is accepted and even expected that the board will disagree with management.
The capacity of the board to accomplish its job is dependent on the quality and accessibility of information. Leading boards can make efficient decisions when their information infrastructure is in alignment to the vision of the board engagement model, engagement model, and mission. This includes an explicit authority matrix (sometimes called a RACI map) that clearly defines which people and groups are accountable for, accountable for, consultative on or informed about specific topics and when these roles and responsibilities boardroomevent.com are fulfilled.