Building a strong board is crucial for long-term success, yet many leaders have difficulty identifying the skills, experience and personalities they need to guide their business. Even once they’ve assembled a team, they struggle to put the processes in place to make the most of their expertise and allow their board to deliver sustainable value.
In our recent whitepaper, “Cultivating a high-performing Board”, expert Beverly Behan outlined the eight essential parameters for creating a high-performing board and ensuring it remains effective through ongoing evaluation and development.
Board composition: Get the right people in the room
The most critical factor in a board’s success is its composition. This isn’t about filling seats, but ensuring the right voices are present to offer valuable insights and engage in productive debate. It’s about finding the perfect blend of skills, perspectives and expertise to address your company’s biggest challenges and contribute valuably to strategic discussions.
“You’ve got to have the right people around the table who can weigh in thoughtfully about the agenda items. In fact, you can pull all the other seven levers, and it won’t matter if you don’t have the right people sitting at the board table,” said Behan. “That said, even if you get your board composition right, you’ll never optimise your board if you don’t pull all the other levers.”
Board information: Focus on what matters
Even the most effective board members will struggle to add value in meetings without the right preparation. Many boards still receive an overwhelming flood of reports and data with little context, which wastes the talent around the table. Instead, send your board concise, relevant information that empowers them to engage in meaningful discussions.
Board orientation is part of this; new members should be educated about your business, culture and strategic priorities from day one.
“This is low-hanging fruit,” said Behan. “I’m still seeing boards getting a hundred-page data dump ahead of meetings. That doesn’t set up a constructive dialogue.”
Board committees: Make the most of your experts
Committees advise the board on particular areas of business, such as audit, compensation, governance and risk. They are often primarily made up of board members, but should also include people with specific subject-matter expertise.
Well-supported and well-structured committees are the backbone of effective governance—and just like for the main board, executives must provide the right support and information to help them add value.
Board dynamics: Encourage constructive dialogue
The relationships between board members can make or break its effectiveness. Is one person dominating discussions? Are directors showing up late, or is there mutual respect and open dialogue? Are management and the board open to feedback, or does it lead to defensiveness?
A balanced, respectful environment allows directors to challenge ideas without tension, which leads to better decisions.
Board agendas: Prioritise strategic discussions
Many board agendas remain static for years—and they often focus too much on routine matters and not enough on strategic priorities. To make meetings more effective, boards should prioritise critical topics like strategy, risk and leadership succession early on, when members are fresh, and avoid rushing through them at the end.
“I look at some board agendas, and it seems like someone created it in 2011 and we’ve been having the same meeting ever since,” laughed Behan. “Lots of boards eat up time with the regulatory stuff, and by the time you get to the more important topics, people are practically waiting for their limos to the airport.”
Board processes: Establish clear procedures
Clear and consistent processes are vital for the continued effectiveness of your board and management team. Regular CEO evaluations will keep your leadership accountable, while ongoing board self-assessments will promote continuous improvement, ensuring the board remains focused, adaptable and capable of guiding the company through evolving challenges.
Board/management relationship: Strike the right balance
A healthy relationship between the board and management is crucial for success. Boards should provide oversight without micromanaging, and management should be open to feedback without becoming defensive.
The board’s role is to guide and challenge management constructively, ensuring decisions align with market developments and the company’s long-term strategy.
Board leadership: Facilitate strong chairmanship
The board chair plays an important role in driving effectiveness—but they don’t always get it right. An effective chair holds directors accountable and ensures all board members are engaged and add value.
“So many board leaders are reluctant to deal with director performance management,” said Behan. “Far too often they’ll turn a blind eye, and that impedes their own credibility.”
Make a commitment to continuous improvement
Building an effective board involves more than just selecting the right people. It’s about creating a group that is informed, collaborative and focused on your company’s most important challenges.
To keep your board engaged and productive over time, consider rotating committee memberships, conducting regular evaluations and bringing in external experts to provide fresh insights. In doing so, you’ll make your board your most powerful asset, helping you mitigate risk, innovate and drive sustainable growth.
