How Good is Your Board?

Board effectiveness and leadership is critical in directing a business or an organisation in both good and bad times. It’s easy to under-perform in good times and get away with it. In bad times the results could be fatal.

High performing boards act as a team and have the appropriate amount of knowledge, skill and insight to be able to take the company forward. Decisions are taken with a strong understanding of the business, its environment and where the Board needs to take it.

How good is your Board? Mark each statement below out of 5 (5 is outstanding and 1 is Poor) and evaluate the strength of your Board.

  1. The Vision for the company and related strategies are communicated and understood throughout the organisation.
  2. The Board is outward facing with an excellent understanding of the environment in which it operates
  3. Strategy is reviewed on a regular basis – at least once a year
  4. The Board has a direct and beneficial effect on the organisational culture.
  5. Good financial, operational and market information provides a reliable platform for informed decisions
  6. Tough decisions are made on a timely basis with minimal drift
  7. Key decisions taken in the last 2 years have all been successful
  8. The interests of all stakeholders are taken into account.
  9. The Board has a full range and balance of expertise and experience to take the organisation forward.
  10. The Board acts as a team – working with and for each other
  11. There is a non-executive presence that will challenge as well as contribute
  12. Directors are continually developing enhanced and new personal capabilities and behaviours in order to fulfil and sustain a strong leadership role.
  13. Succession planning is in place and is actively managed.

How Good is Your Board?

Board effectiveness and leadership is critical in directing a business or an organisation in both good and bad times. It’s easy to under-perform in good times and get away with it. In bad times the results could be fatal.

High performing boards act as a team and have the appropriate amount of knowledge, skill and insight to be able to take the company forward. Decisions are taken with a strong understanding of the business, its environment and where the Board needs to take it.

How good is your Board? Mark each statement below out of 5 (5 is outstanding and 1 is Poor) and evaluate the strength of your Board.

  1. The Vision for the company and related strategies are communicated and understood throughout the organisation.
  2. The Board is outward facing with an excellent understanding of the environment in which it operates
  3. Strategy is reviewed on a regular basis – at least once a year
  4. The Board has a direct and beneficial effect on the organisational culture.
  5. Good financial, operational and market information provides a reliable platform for informed decisions
  6. Tough decisions are made on a timely basis with minimal drift
  7. Key decisions taken in the last 2 years have all been successful
  8. The interests of all stakeholders are taken into account.
  9. The Board has a full range and balance of expertise and experience to take the organisation forward.
  10. The Board acts as a team – working with and for each other
  11. There is a non-executive presence that will challenge as well as contribute
  12. Directors are continually developing enhanced and new personal capabilities and behaviours in order to fulfil and sustain a strong leadership role.
  13. Succession planning is in place and is actively managed.

Scoring

Above 55:
A strong Board – but what would it take to make it even stronger?
40-55:
Probably OK but which key weaknesses need to be addressed? What external help may be needed?
25-40:
Does the Board understand its role? Serious strengthening may be needed.
Below 25: 
You’re in a highly risky situation! Emergency action needed- or get out asap!

Scoring

Above 55:
A strong Board – but what would it take to make it even stronger?
40-55:
Probably OK but which key weaknesses need to be addressed? What external help may be needed?
25-40:
Does the Board understand its role? Serious strengthening may be needed.
Below 25: 
You’re in a highly risky situation! Emergency action needed- or get out asap!

Resources

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How Good Is Your Board

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How Good Is Your Board

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