Improving the performance of boards of directors

How to improve the performance of boards of directors: Boards of directors provide the leadership and accountability that determine the success of an organisation. Their effectiveness is crucial – and yet many boards lack effective processes. The application of simple standards at board level can radically improve performance.

Brefi Group can help chairmen and chief executives improve the performance of boards of directors.

• Question one: Is the board a balanced team? How do you select directors? Are all the roles covered? What do you look for in a non-executive director?

• Question two: How effective are individual directors? Do they understand their roles and responsibilities? How do you induct new directors? What arrangements do you have for continuing development of directors? Do directors have access to confidential external coaching?

• Question three: Do you have regular (at least annual) corporate retreats when the whole board can get away together and review performance and strategy?

• Question four: Does the board practise the proven processes recommended by the Institute of Directors?

Use the menus on the left to explore the whole range of factors involved in improving the performance of directors and boards. Or, better still, why not contact us now for a confidential discussion on how we could help improve your board effectiveness.

Proven processes for improving the performance of boards of directors

The Institute of Directors publication Standards for the Board provides benchmark standards for both the operation of boards and the behaviour of individual directors. It is an excellent basis for a director coaching or mentoring programme.

Standards for the Board provides guidelines of good practice, including statutory requirements, for company directors. It provides a framework within which company boards can develop, maintain and review their corporate governance policies and practices. And it helps boards improve their own performance and, through this, the success of their companies.

Sensible application of Standards will clarify your board's tasks and the way you conduct your affairs, and help you make many of your important decisions. It can be used as a tool for re-appraising what the board does and how it does it, and for taking actions which might otherwise not have been taken.

Here is a selection of behaviours as an initial checklist: -

1. We define and review the role and responsibilities of each individual director and how these contribute to the effectiveness of the board.

2. Board members are effectively briefed in time to prepare for meetings.

3. We regularly review the quality of the board's decisions, advice and its actions.

4. The company's organisation structure and capability is appropriate for implementing its chosen strategies.

5. Company objectives are consistent with the mission, values and needs of stakeholders, and form the basis of company strategy.

6. The vision and mission are championed by the entire board throughout the organisation.

7. The vision and mission are monitored and reviewed regularly.

8. Company objectives are Specific, Measurable, Achievable, Realistic and Time-bound.

9. The board regularly reviews the company's Strengths, Weaknesses, Opportunities and Threats.

10. The organisation's culture encourages continuous change and questioning of convention.

11. The board clearly delegates authority to management and regularly reviews management's effectiveness.

12. All staff, including me, receive a personal development review at least annually.

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Answer this question, honestly; could the performance of your board be improved and your directors be more effective? Most boards would have to answer yes! So, why not contact us now for a confidential discussion on how we could review board processes and help you improve the performance of your directors and board.