Effective board management requires directors to take their responsibilities very serious, commit themselves to the process, and strive to improve. It also requires a strong infrastructure to help the board and assist them to do their best work. This includes the governance processes, systems and tools that are in place for meeting planning, material creation in the portal, logistics management, and materials creation.
The most effective boards are defined by a rigorous ongoing study of important, mission-critical drivers as well as opportunities and risks, and a focus on the key stakeholder engagement. This entails requesting reports on customer, supplier and other key stakeholder behaviours and trends, as well as economic headwinds and opportunities. It means going out to the field and seeing how the company works first-hand. Then, bring these findings back to the board to discuss.
This pillar is based on the trust and respect between board members, which need to be present to permit debates and discussions of high quality. It is also essential to create an environment which it is acceptable and expected that the board may disagree with management.
The ability of the board members to perform its job depends on quality and accessibility of information. Leading boards can make efficient decisions when their information infrastructure is aligned to the vision of the board engagement model, engagement model, and mission. This includes a clear authority matrix (sometimes called a RACI map) that clearly defines which individuals and groups are responsible for, accountable for consulting on or being informed about particular topics, and when those roles and responsibilities are met.