Effective board management requires that directors accept their responsibilities serious, commit themselves to the process, and continuously strive to improve. It also requires a strong infrastructure to aid the board and allow them to do their best work. This includes the tools, processes and systems in place for meeting planning, materials development as well as portal management as well as logistics and communications.
The most effective boards are marked by a constant analysis of material, mission-critical drivers, risks and opportunities and an emphasis on key stakeholder engagement. This entails requesting reports on supplier, customer and other key stakeholder behaviors and trends as well as economic headwinds and opportunities. This also includes going out into https://boardroomevent.com/5-best-practices-for-effective-board-management/ the field to see firsthand the way the company works and bringing those insights back to the board.
The most important aspect of this pillar is the fundamental trust and respect that must be present among board members in order to facilitate a productive discussion and debate, including difficult questions and perspectives. It is also necessary to create an environment where it is acceptable and even expected that the board may disagree with management.
The capacity of the board members to perform its job is contingent on the quality and accessibility of the information. The most effective boards can make informed decisions when their information infrastructure is aligned to the board’s vision, engagement model, and mission. This includes an explicit authority matrix (sometimes called a RACI map) that clearly identifies which individuals and groups are responsible for, accountable for being consultative or informed on specific subjects and when those roles and responsibilities are met.