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The nine questions you need to ask to take your board from good to great
How to evaluate your board’s effectiveness and what to do if it’s not meeting the mark
Limited time and expanding responsibilities. It’s the reality in most boardrooms today which makes it more important than ever to focus on efficiency and effectiveness. How does that happen? When a continuous-improvement mindset is prioritized, including modernizing practices and optimizing operations. How can you set yourself and your board on the path to success? By asking 9 questions.
From board composition to evaluations, culture and more. How your board can level-up
- 1. Do we have important board skills or attributes missing?
- 2. How well are our committees functioning?
- 3. Do we have strong board and committee leadership?
- 4. Are we getting our agenda right?
- 5. How could our pre-meeting materials be improved?
- 6. How effectively do we interact with each other as board members?
- 7. How effectively are we engaging with management?
- 8. How do we get more value from our performance assessments?
- 9. How are we continuing to upskill ourselves?
1. Do we have important board skills or attributes missing?
Making sure that the right people are at the table sets the foundation for everything the board does. With a limited number of seats, boards need to carefully consider whether it is beneficial to add a director with deep expertise in a particular area — for example, cybersecurity or AI — based on the company’s strategy, risk profile, industry, management team capabilities and other factors. And if you do — evaluate if they have the broader business experience you need too.
Keys to effectiveness:
- Get skills needed for the future
- Use a multi-year skills matrix to plan for board succession
- Expand the number of directors who interview candidates
- Build a talent pipeline
2. How well are our committees functioning?
The average S&P 500 board has four standing committees. It’s worth periodically assessing standing committees and reorganizing to address the changing business landscape, company business model and expanding risks. If committees shift, so will charters, the public documents that establish committees’ roles and responsibilities.
Keys to effectiveness:
- Periodically reassess risk oversight allocation
- Be smart about cross-committee service and committee member rotation
- Prioritize crisp committee readout
- Create new committees selectively
3. Do we have strong board and committee leadership?
No matter who leads the board or committee, that person needs to display integrity and a clear vision for the role. They must be able to facilitate important discussions among board members, make sure that all voices are heard and deliver difficult messages when necessary. And they must be open to other members’ feedback and commentary on their leadership approach.
Keys to effectiveness:
- Be ready and willing to deliver tough messages
- Have your next board and committee chairs in waiting
- Clearly define board leadership’s role in a crisis
4. Are we getting our agenda right?
While the board owns its agenda, the CEO and board leadership should meet in advance of full board meetings to develop the agenda and identify topics likely to involve a challenging discussion or important decision. This applies to committee chairs too who should also meet in advance with management and/or relevant third parties (e.g., external auditors).
Keys to effectiveness:
- Own the board agenda
- Carefully consider the order of topics to be covered
- Save time on recurring items with a “consent” agenda
- Hold executive sessions before and after board and committee meetings
5. How could our pre-meeting materials be improved?
Executive summaries are critical, but board leadership should ask management to also include key questions or specific areas of focus for the board to consider as they review materials.
Keys to effectiveness:
- Make sure board materials are customized
- Get dashboards
- Have pre-read materials anchor meeting discussions without dominating them
- Give management feedback on materials’ quality and timeliness
6. How effectively do we interact with each other as board members?
Problematic group dynamics can derail all kinds of teams, and boards are no exception. Dysfunctional board dynamics can hinder open dialogue and sharing of diverse viewpoints, which ultimately can lead to good boards making bad decisions. A focus on improving board culture and team dynamics can lead to more effective problem-solving and decision making.
Keys to effectiveness:
- Provide continual feedback to directors
- Formalize a mentoring program for new directors
- Add behavioral questions to board assessments
7. How effectively are we engaging with management?
Board meetings provide a unique opportunity to engage directly with the management team. But since these interactions are condensed and focused on high-stakes decision-making, it’s important for boards to prioritize finding ways to strengthen these relationships while retaining the ability to challenge management and pose tough questions.
Keys to effectiveness:
- Meet with a broader group of executives
- Change the setting to change the dynamic
- Develop relationships with management outside of the boardroom
8. How do we get more value from our performance assessments?
Too many directors view their annual performance assessment as a compliance exercise. An effective approach turns the assessment into performance feedback with the goal of continuous improvement. This requires boards to re-envision their goals, assessment tools, processes and board leadership’s approach to providing ongoing feedback. The process should aim to address problem areas once they’re identified, with follow-up actions and timelines along with who is responsible for each action.
Keys to effectiveness:
- Don’t fear individual assessments
- Address the elephant in the room
- Get an external viewpoint
- Consider giving stakeholders more insights into your process
9. How are we continuing to upskill ourselves?
Peer networking, soliciting outside views, attending conferences and scheduling deep-dive sessions with management on topics can help directors stay current and gain deeper insights to perform their oversight responsibilities. Some boards mandate and provide budgets for external continuing education; others informally encourage it.
Keys to effectiveness:
- Make continuing education a part of every board meeting
- Prioritize the most important deep-dive education topics
- Invite outsiders for a broader view
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