Board Advisory

Think strategically. The Board’s guidance of an organization is not about management: It is about vision and leadership. And while there are many characteristics that define these two terms, the most important one is the ability to engage in strategic thinking. This is what boards do, so board members must continually work on being more strategic.

An ideal board is one which works closely with the Chief Executive Officer (the "CEO") of the company to give not only support and direction to him or her, but one which also challenges the CEO to run the business in accordance with the company's objectives (strategy). The board must be the pillar that holds up the company. The board is responsible for the success or failure of the business. Furthermore, it is the soul and conscience of the enterprise. If the organization is not doing its job, it is because the board is not doing its job. The mandate of the CEO, guided by an active board, is to drive the value of the company. A board serves the company - not specific shareholders or groups.

With this in mind, the Institute provides advisory services to company boards in the areas of:

1. Board Assessment - The Board Evaluation Tool (BET) is a self-reporting questionnaire that enables one to measure how the board is currently operating in key areas such as strategy, business principles, internal controls, risk and performance management.
2. Board Development - Issues are addressed to improve board performance. For example: setting strategy and monitoring organizational performance, committee roles and responsibilities, lack of strategic forward vision, disengaged board members, micromanaging, and board/management miscommunication.
3. Board Selection - Effective hiring frameworks are developed for board membership based on time tested scientific methods.  CEO succession planning (both crisis and long term) and training of internal CEO candidates are also addressed.

A recent survey by McKinsey & Co. suggests that corporate board members are not satisfied with their performance as corporate overseers. According to the global survey of 1,597 board members -- 31% of whom were board chairs -- only 3% believed that "the quality of [the] board's overall performance" was excellent.

If you believe top leadership matters at all to a company's performance, imagine what could happen if we could improve boards' capabilities. Imagine if we could get to the level where, rather than 3%, closer to 20 or 30% of all boards were, in fact, doing an excellent job. Imagine the impact that could have on the world's economies.

The solutions are not out of reach. Nearly half of the board members surveyed by McKinsey agreed on the ways boards can do more and tap more of their own capacity. The directors surveyed believed "more time spent on company matters," "more appropriate mix of skills/backgrounds among board members," and "better people dynamics that enable tough, constructive boardroom discussions" were the most effective ways to improve overall board performance.