THE ART OF MANAGING A BOARD
THE BIG IDEA
Effective board management is critical for organizational success, with only 30% of executives rating their boards as "good" or "excellent" in 2024. Boards done right create valuable stakeholder support while achieving corporate goals.
WHY IT MATTERS
Strong boards promote accountability, fairness and ethical conduct, building trust with stakeholders while safeguarding the organization's reputation.
Despite criticisms, 76% of executives trust their boards to engage with shareholders and 68% trust boards to make decisions consistent with company values.
Board effectiveness is increasingly under scrutiny, with 80% of directors in 2024 believing their board is "stuck in the weeds" rather than focusing on high-level vision.
SMART START: ONBOARDING EXCELLENCE
Implement detailed onboarding for new members
Establish clear behavioral expectations around participation
Create a structured board framework and maintain it
Effective onboarding sets the appropriate tone and promotes critical engagement with management and stakeholders.
MAXIMIZE MEETING VALUE
Focus on discussions over presentations
Provide materials before meetings to keep sessions strategic
Customize time allocations based on priorities
Keep core narratives central to every meeting
Engaged stakeholders should be front and center, with more frequent interaction between large shareholders and board members
EMBRACE INNOVATION & IMPROVEMENT
Empower creative problem-solving for industry and economic shifts
Leverage diverse board talents for fresh perspectives
Support board members with ongoing development. 83% of directors surveyed in December 2024 don't believe their boards are properly set up to harness AI opportunities.
BOTTOM LINE
Boards that focus on strategic vision and refrain from getting stuck in operational details provide optimal value to organizations. A leadership team that understands how to effectively engage, manage and support its board will ultimately find more success and further momentum.
