There are enough discussions on the mirage of challenges boards face already, including the need to run an organisation in the face of the pandemic, the emergence of disruptive challenges, and changing demographics and associated geopolitical risks.
Having a fully-functional and effective board is non-negotiable, especially in light of recent corporate failures. Here are a few important talking points on the need for maximum board effectiveness and how to ensure the same.
Every board member can contribute effectively.
Recall the seven pointers of effective board performance mentioned in our previous article, The Seven Hallmarks of Effective Boards. Rather than leave the Chair or SID to pull all the strings, every board member should be open to taking the initiative and elaborate their boardroom contributions. These pointers offer a framework for annual performance growth, and the same can be effectively monitored through proper self and peer review systems.
The third wave of development of board reviews is near.
Over time, we have seen board evaluations transition from interviews to questionnaires. But recent findings – including the seven pointers – have pushed firms to seek more quality data via board evaluations. While this doesn’t take away the relevance of questionnaires and interviews, there is a need to expand the scope. A broader scope enables the board to access actionable insights and data to perform effectively.
Transition to the Virtual World is inevitable.
In the aftermath of the COVID-19 pandemic, firms now prioritise the need for digital and operational flexibility. Leadership and management roles can also be well-digitised, giving the much-needed flexibility firms need to adapt to the changing demands, both in the face of a pandemic and other pressures springing up from the business world.