Effective board management requires directors to take their responsibilities seriously, commit to the process, and work to continue to improve. It also requires a solid support infrastructure that allows the board to do its best work and accelerates the efforts of board members as well as the management team. This includes the tools, processes and systems in place to handle meeting planning, materials development the management of portals logistics, communications and logistics.
The most effective boards are distinguished by a constant examination of the most important, mission-critical drivers risk and opportunities as well as a focus on key stakeholder involvement. This means requesting reports on supplier, customer and other key stakeholder behavior and trends as well as opportunities and headwinds in the economy. It also involves going out in 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 underlying trust and respect that must exist between board members to allow for a high-quality discussion and debate, which includes challenging questions and viewpoints. It is also necessary to create a culture in which it is acceptable and expected that the board might not agree with management.
The capacity of the board to accomplish its job depends on the quality and accessibility of information. Leading boards can make efficient decisions when their information infrastructure is aligned to the board’s vision and engagement model as well as its mission. This includes an authority matrix (sometimes called a RACI map) that clearly identifies which people and groups are accountable for, accountable for being consultative or informed on specific subjects and when these roles and responsibilities are met.