As the leader of a group, you have the responsibility of making sure your board members are armed with the necessary information to fulfill their roles and responsibilities. This means that the board receives the information it requires from the management. This could mean conducting periodic Board Effectiveness Reviews.
A thorough evaluation process can assist the board to gain a better understanding of a variety of issues that could be hindering the performance of the board. These can range from operational concerns like the duration of meetings or composition of agendas for the board to more complex concerns about the role of the board as well as the gaps in knowledge and skills on the board. This can also point out the need for new directors, or adjustments to directorships already in place.
The board must be clear on the goals of its assessment and should be the driving force behind the process with the support of senior managers who communicate board management effectiveness with the board on a regular basis. The board should be able to discuss the results together and commit to addressing any issues that arise.
A recent study based on nine years of self-evaluation information for boards from a leading Australian consulting firm that specializes in survey research and corporate governance services yielded 11 reliable elements that contribute to board effectiveness. Six of the factors were exclusively or specifically Leblanc and Gillies (2005) “how” item, reflecting discrete processes for how boards can be effective. These include effective meetings, internal communication teamwork, leadership from the chair and efficient record-keeping as well as information management.
