The effectiveness of the board’s management component of the assessment process for board members concentrates on the board’s processes for managing its agenda, meetings, and distribution of its written reports. It’s important to make sure that there is a clear definition of responsibilities as well as timelines and quantifiable outcomes for each item on the agenda.

Another important aspect to consider is the capacity of the board to understand and respond to business risks and challenges in a timely fashion. Boards need to be flexible chairman vs ceo in their approach, no matter if it’s shareholder activism or cyber security.

In the end, the ability of the board to motivate and assist the CEO and senior management is essential in enabling them carry out their responsibilities. A thorough assessment of the board will assist in reestablishing specific roles and functions of the C-Suite and the board of director so that everyone works together to achieve the same objective.

The board’s understanding of the business is broader than just the information they receive from management and includes their own research on customer, supplier and other key stakeholder behavior and trends, as well as economic headwinds and opportunities. Board members also visit companies and interact with management in informal interactions between meetings to get firsthand knowledge.

The board has an information management system that is well-defined and understood. It provides the necessary level of detail to make informed decisions. This could include a board matrix of reports and notices that clearly defines the issues that require board oversight (mission essential) and what does not (management issues). A governance matrix that defines the role of the board in each of these areas could be helpful.