What should a board review look at?
These are seven key themes which a board effectiveness review should address:
1. The board’s role and responsibilities
For example…
- does the board have a clear role and remit and is this understood?
- is the difference between the role of the board and management evident?
- are the boundaries of non-executive responsibility clear?
2. Skills and experience
For example…
- does the board have the right skills for now and the future?
- do board members display the right attributes and behaviours?
- how effective is succession planning?
3. Board dynamics and culture
For example…
- is there an appropriate board culture and a constructive mindset?
- is there effective challenge, and sufficient support and engagement?
- are the right relationships evident (e.g. between the Chair and Chief Executive, and amongst the Non-Executives Directors and the Executives)?
4. Use of the board’s time
For example…
- is agenda planning effective, so all necessary board business is covered?
- does the board focus on the important areas, and avoid the trivial?
- are meetings well chaired so that debate is encouraged, yet time well managed?
5. Board information
For example…
- is board information clear, concise, insightful and relevant?
- is the purpose of board information clear?
- is information made available on a timely basis, for meetings and between?
6. Support for the board
For example…
- does management display an attitude that is supportive of the board?
- is effective support provided by the company secretary’s team?
- is there an appropriate committee structure that supports the board’s work?
7. Engaging with stakeholders
For example…
- does the board have a good understanding of investor and stakeholder views?
- is there a good picture of employee viewpoints and sentiments?
- does the board communicate effectively, internally and externally?