The Board Management Effectiveness Dimension of the Board Evaluation
https://www.yourboardroom.net/ceo-vs-chairman-vs-president-responsibilities/
The board management effectiveness component of the board assessment process concentrates on the board’s procedures for managing its agenda, meetings and the distribution of a written reports. It is important to ensure that there clearly defined responsibilities, timelines and measurable outcomes for each item on the board’s agenda.
Another critical aspect is the ability of the board to recognize and respond to business risks and issues in a timely manner. Boards must be flexible in their approach, whether it’s shareholder activism, or cyber-security.
Finaly, the board’s ability to motivate and support the CEO and senior management is crucial in allowing them to fulfill their duties. A thorough assessment of the board’s performance could aid in reestablishing the exact objectives and roles of the C-Suite and the board of directors to ensure that everyone is working to achieve the same goals.
The board’s knowledge of the business is more than what management says to them and includes their own research into customer, supplier and other key stakeholder behaviors, trends and economic headwinds and opportunities. Board members can also visit the sites and interact with management in a casual and informal manner between meetings to get direct information.
The board has a well-defined and well-understood information management system that has the appropriate level of detail that allows for informed decision-making. This could include a matrix of board reporting and notices that clearly define what issues require oversight by the board (mission essential) and what does not (management issues). It could also be beneficial to create a governance matrix that sets out the appropriate role for the board in each of these areas.
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