Board Effectiveness Categories Explained
The effectiveness and performance of your board can be measured across 20 board effectiveness categories
The 20 most important categories of a board’s effectiveness explained
No matter how big your organisation is, the bar for the effectiveness and performance of your board should be set very high. It is vital that boards do not just go through the motions; to help ensure this, we offer 20 categories of board effectiveness that should be assessed to ensure your board’s performance.
These 20 categories often manifest themselves behind closed doors, which is why benchmarking using validated surveys is a proven method to help boards understand and, if necessary, improve their effectiveness in each area.
What - Board clarity
Who - Board composition and renewal
How - Board processes
How a Board comes together to address issues and make decisions is a critical determinant of its effectiveness. How Boards act — or fail to act — is a complex interaction and the result of the nine factors set out in this section.
These factors include hard and soft elements of “Board Process” or the “How” the Board carries out its tasks. If a board has good processes it will significantly assist the board to carry out its task (the Do) well.
Do - Board tasks
The Do describes what the board does in terms of its main tasks.
If the board carries out its most important tasks well it can significantly enhance the organisation’s overall performance and its sustainability as well as protect and enhance its reputation. If the board does not meet some or all of these fundamental responsibilities the organisation will almost certainly suffer as a result.
- Do - 12. Purpose and Strategy
- Do - 13. Board Priorities
- Do. 14. Organisation Performance
- Do. 15. Organisation Culture and Integrity
- Do. 16. Governance of Risk and Compliance
- Do. 17. Executive Talent and Succession
- Do. 18. Executive Remuneration
- Do. 19. Continuous Improvement
- Do. 20. Adds Organisational Value
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