McKinsey & Company released earlier this year their latest report into what is a value-creating board. The full report and commentary can be found here, but following is a selection of quotes and highlights and challenges for your board.
Striving Boards:
- Rate particularly well at strategy and performance management, and want to spend more time each year on strategy
- An exceptionally strong culture of trust and respect, and board members and the management team constructively challenge each other
- The chair runs the meeting well, seeking feedback after meetings
- Spend on average 41 days per year on board duties
Complacent Boards:
- Only 9 percent of directors rate their boards as effective at ensuring the company has a viable CEO successor
- They struggle to embrace feedback and rarely engage in any form of evaluations
- Spend on average 28 days per year on board duties
Ineffective Boards:
- Few report a culture of trust and respect in the boardroom
- Few directors seek out any information on their own
- About 1 percent say they received sufficient director induction training
- Spend on average 32 days per year on board duties
What type of board do you have? Is it time to review how you function and aim to become a striving board? The Avondale Business School can assist your board to become a high performing board – find out how by contacting Warrick Long at the Avondale Business School.
P: 02 4980 2168