Management problems are one of the most common problems in companies, and as statistics from recent studies show, the board of directors is one of the most frequent cases where it is present. This in turn leads to a string of troubles, such as unproductive meetings, slow decision making, delayed meetings, and even lost revenue as a result. To prevent this from happening, and to fix it if you are present, we offer five steps in this article that you can follow to improve your board’s productivity.
Research company information more proactively
Typically, the management team at most companies provides board members with access to the materials and ideas they need in the form of reports. These reports are provided to attendees before each new meeting. However, keep in mind that because of their legal responsibilities, board members may also request additional information to help them make decisions. Studies have shown that directors who use this power more actively are more knowledgeable about company affairs, and in some specific situations, it promotes greater involvement in discussions, and as a result, greater productivity. It also shows management your dedication, which cannot go unappreciated.
Invest time to adapt
Regardless of a new board member’s age, ethnicity, etc., the learning process is only more intense at the beginning. It will take time for the newcomer to learn the culture, strategy, methods, and organization of the council. To adapt and get used to everything faster, the board needs to develop thorough and focused adaptation processes, this will allow the new member to start showing up and making a useful contribution to the common cause much sooner.
Pay more attention to board evaluation
Most board rules spell out that the general evaluation of meetings, the board needs to conduct at least once a year, but not all board members take an active part in this process, thinking it is not as important. On the contrary, the effectiveness of the meetings changes over time – and for better or worse, it depends on the quality of the leader’s leadership, the overall composition of the board, and the economic life cycle of the company. To see if you’re moving in the right direction, it’s critical to look back at your performance and draw your conclusions based on the facts.
Create space for non-executive voices
It is very good practice to give independent directors space to discuss important company matters with each other. This increases the accountability not only of the board but of the organization as a whole. It is desirable to allocate such time for discussion at each meeting and without the board chair present. This way, participants can express their thoughts more candidly, without creating tension in the room-who knows, maybe they want to discuss the CEO’s success?
Appoint a chairperson to facilitate more effectively
Board meetings are often stressful, especially if things aren’t going well and performance levels are dropping in front of their eyes. The board of directors makes some of the most difficult and responsible decisions in the company, on which the future well-being of the organization will depend. From firing and hiring the CEO to mergers and acquisitions, the weight of responsibility for these decisions rests with the board, with limited time for discussion. Meanwhile, the chairman of the board is the caretaker to ensure that the meeting runs efficiently and strictly according to plan. He must form and send out a detailed and clear agenda, push participants to express their opinions, and keep track of everyone’s speaking time so that everyone has time to speak.