Effectiveness of management at the board level is a critical element in board governance. The effectiveness of a board is based on several dimensions which include composition (the right balance of expertise and experience) efficient meeting the environment of open communication and the willingness to engage in actual conversations, even the tough ones. The more effective a Board is more effective, the better it is able to set strategic direction and challenge performance of an organization.
The annual self-assessment of the board can range from a simple director questionnaire, to an extensive interview process, often conducted by a third-party which can provide valuable insights into the dynamics of the board as well as overall level of maturity. These assessments can help boards to understand how they compare with the best practices and create a plan of action in areas that require improvement.
The key to board management effectiveness is to foster a cooperative environment where directors view themselves as collaborators, not enemies. This can be accomplished through board development and encouraging the refreshment of the Board. This includes the willingness to review mandatory retirement schedules and the length of their term limits.
One way to boost productivity between meetings is to allow directors to share and access information via dedicated communication tools such as discussion boards and remote votes. This can reduce the necessity for lengthy meetings in person and also ensure that all tasks and action items are completed on time. Board members will spend less time working on administrative tasks, and more time directing changes.