Effective board management requires that directors accept their responsibilities seriously, dedicate themselves to the process, and constantly strive to improve. It also requires a robust support infrastructure that allows the board to perform its best work and accelerates the work of the board members and management team. This includes the governance tools, processes and systems in place to handle the planning of meetings, materials development the management of portals as well as logistics and communications.
The most efficient boards do a thorough analysis of mission-critical drivers and risks, and concentrate on the involvement of key stakeholders. This includes requesting reports about customer, supplier, and other key stakeholders’ behaviors and trends. It also involves economic headwinds as well as opportunities. It means going out to the field to observe how the company operates firsthand. Then, bringing these findings back to the board for discussion.
This pillar is based on the trust and respect between board members, which must be present to allow for debates and discussions of high quality. It is also crucial to create a culture in which it is expected and acceptable that the board might not agree with management.
The ability of the board to perform its job depends on quality and accessibility of information. Boards that are efficient can make decisions when their information infrastructure is in alignment with the vision of the board engagement model, engagement model, and mission. This includes an authoritative matrix (sometimes called a RACI map) that clearly identifies which people and groups are accountable for, accountable to being consultative or informed about specific topics and when these roles and responsibilities are fulfilled.