Effective board management requires directors to take their responsibilities seriously and be committed to the process, and work to continue to improve. It also requires a strong infrastructure to support the board and help them to do their best work. This includes the governance tools, processes and systems that are in place to handle the scheduling of meetings, the development of materials and management of portals as well as logistics and browse around here communications.
The most efficient boards undertake a thorough analysis of the most important drivers and risks to their mission, and concentrate on the involvement of the key stakeholders. This entails requesting reports on customer, supplier and other key stakeholder behavior and trends, as well as opportunities and headwinds in the economy. It also involves going out into the field to observe how the company functions and bringing those insights back to the board.
The most important aspect of this pillar is the basic trust and respect that should exist between board members to facilitate a productive discussion and debate, including challenging questions and viewpoints. It is also necessary to create a climate in which it is acceptable and expected that the board might not agree with management.
The quality and accessibility of information is vital for the board’s ability fulfill its duties. Effective boards can make decisions when their information infrastructure is aligned to the board’s vision of engagement, model of engagement, and mission. This includes an explicit map of authority (sometimes referred to as a RACI Map) that clearly defines who is responsible for, accountable, consultative or knowledgeable about specific subjects and when these roles and obligations have been fulfilled.