The final aspect...
Board management
With the right board design in place and the right members making up the board, you can focus on the third area of excellence – board management. Typically it is the chairman’s key function to manage the board and make sure it performs effectively. The chairman should lead the board in setting its purpose and direction, and in balancing discussion and consensus building with championing progress of key issues. In doing so, he or she will secure support and advice from the CEO and other board members. Well-managed boards typically have three characteristics:
- A balanced schedule of formal meetings. Most ventures hold formal board meetings regularly, monthly or bimonthly. Each meeting should comprise a regular review of performance to date, a focus on a specific topic, and time for ad hoc discussion. The specific topics should be carefully considered and scheduled. These can include a strategy review, approval of the annual business plan and budget, review of management performance and approval of bonuses, review of market / competitive conditions, review of innovation and research and development activities, and many other topics.
- Continuing informal oversight. In addition to the formal meetings, well-managed boards have effective processes for ongoing informal oversight. Primarily based on continuing chairman – CEO dialogue, this can be supplemented by assigning individual board members to specific areas of ongoing oversight based on their particular skills and experience.
- Continual timely information sharing. Board members should have continuing access to timely, accurate and relevant information. Good CEOs ensure their boards are always kept apprised of all key developments, and make sure there are no surprises at board meetings. With the wide range of online collaboration tools now available, boards today are able to keep informed, discuss issues and reach decisions between formal meetings
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