Is your board as effective as it could be?

Chat GroupIs your board taking all the steps necessary to ensure you have the right mix of skills and qualities?

What are other boards doing to maximise their effectiveness?

Grant Thornton’s report, The Board – Creating and Protecting Value looks at the approaches organisations are taking to ensure their boards are successful.

Are boards effective?

The survey behind the report asked: Does your board have the appropriate skills and expertise to fulfil its role effectively?

85% of respondents said yes, it does – good news.

More than 60% of respondents believe there are adequate processes in place to evaluate the performance of their directors.

There are some sector differences here, with FTSE-listed companies more likely to believe their board reviews its own performance sufficiently, and private companies more likely to disagree. In some ways, this is unsurprising, given that publicly-listed companies are open to more scrutiny than privately-owned ones.

The charity sector is seeing increased pressure to demonstrate effectiveness and good governance, in line with a growing accountability for charities in the media.

Evaluation is a key component of a successful strategy. The report says that ‘A high performing board will open itself out to external scrutiny’.  In many organisations, this need for evaluation is embedded in the code of governance. With governance being an area where some boards are falling short, you will want to do all you can to comply.

How can you make sure your board is effective?

Follow these tips and you will enjoy a more effective board process: one that makes the best use of your directors’ time, drives the best decisions, and supports your organisation’s strategy.

For more tips and insight, this case study shows how ABF, the Soldiers’ Charity, improved the efficiency of their board processes. You can read a free copy here.

Nothing in this document should be treated as an authoritative statement of the law. Action should not be taken as a result of this document alone. We make no warranty and accept no responsibility for consequences arising from relying on this document.

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