How to evaluate the board’s effectiveness

How to evaluate the board’s effectiveness

To effectively evaluate the board, you must have set targets against which you are evaluating the board members.

This calls for an effective governance structure and separation of powers.

At the topmost, there must be the owner of the business. For publicly listed companies, these are shareholders with an equity certificate. The shareholders, at the AGM or annual general meeting, must elect the board members and set clear targets for the board so appointed.

For emphasis, when the owner/ shareholders appoint the board, she/he must give them a score card or targets that are measurable. According to Kaplan and Norton, a balanced scorecard […] Read more

How to conduct the business of the Board

The role of Board is to promote long term success of its stakeholders. This looks at the going concern for the fore feeble future of the business to ensure that the business does not collapse. The board’s business is to look at long term perspectives. Instead of asking how to make profits, they ask how the business will remain competive for many years to come. The board is looking at bigger picture dynamics and how to position the business for unprecedented future success. They are focusing on strategy, how to remain responsive to customer needs and ensure the company meets […] Read more