Effectiveness of management at the board level is a key aspect of good governance for boards. The effectiveness of a board depends on a number of aspects such as composition (the right balance of skills and experience) and meeting efficiency and a atmosphere of open communication, and the ability to engage in actual conversations, even the tough ones. The more effective a Board’s performance, the better it can determine strategic direction and test the organizational performance.
The annual self-assessment process for boards ranges from an easy director questionnaire to an elaborate interview process, often performed by a third party that can offer insights into the dynamics of the board and overall level of board maturity. These assessments can help boards understand how their current practices stack up against best practices and can provide a clear plan of action in areas where more improvement is required.
The most effective way to manage boards is to foster a cooperative culture that allows directors to see themselves as partners, not adversaries. This can be accomplished through board development and promoting the renewal of the Board, including the willingness to consider reconsidering mandatory retirement schedules and term limits.
Another method to increase productivity between meetings is by allowing directors to communicate with one another using specialized communication tools, such as discussion boards and remote voting. This can help reduce the need for long meetings in person and ensure that each action item and task are completed on time. In the end, board members can spend less time managing and spend more time implementing forward with the process of change.