Effective Board Management

In a boardroom that is respectful even when there is disagreement, effective boards concentrate on reaching consensus and moving the company forward.

Board members have a clear sense of the role they play in the company and how that is connected to their legal obligations. They align their own personal activities to the objectives of the board and work hard to achieve them. They are proud of their work and enjoy the interactions between them as evidenced by their high participation and attendance at meetings.

The board has a clear framework for its work and follows the best practice in terms of parliamentary procedure as well as committee structures for the board. This allows the board to get to effectively and efficiently with an understanding of its role and the tasks that need to be delegated to other governance institutions or management.

Effective board directors are prepared for meetings, are aware of their duties, and have a well-informed board and management understanding of the operations as well as the industry and environment of the company. They ask the right questions, find the truth and have a rich discussion both in person and online.

A diverse board can add value. It ensures that the board has access to a broad spectrum of knowledge and opinions which allows it to get an accurate picture of the business. However, managing diversity isn’t easy and the board must have standards for performance and knowledge that are clearly defined and monitored. The board should also invest in training to keep up-to-date with new developments that could affect the organisation’s ability to succeed.