Board effectiveness involves asking the right questions. Over the last quarter, my conversations with directors and governance professionals have raised and explored many common themes. It is interesting to note that most are not specific to geography, sector or ownership. It is also true that most of these indicative questions require reflection and thoughtful consideration rather than an instant response.
Board remit. ‘What are we here for?’ ‘Do we agree?’ Do we have a common purpose?’ ‘How do we create value?’ How brave do we feel?’ ‘How far into the future do we want to look?’
Board structure & composition. ‘Are we fit for the future?’ ‘How should we organise ourselves?’
Time. ‘How much time do we need?’ ‘How much time have we got?’ How can we schedule our time together to deliver our remit?
Support. ‘What support do we need?’ ‘Have we invested in our governance team?’ ‘Who should provide external expertise?’ ‘Do we already have this expertise internally?’
Scrutiny. ‘What do our stakeholders expect?’ ‘What standards do we hold ourselves to?’ Who is watching?’ ‘Are we compliant?’ ‘Do we understand how to engage in a digital world?’
Liability. ‘How could we, the board, be affected by our decisions, our actions and the results we achieve?’ ‘How could I be affected?’
Capability. ‘What capability do we need to lead our business now and in the future?’ ‘What contribution could I make?’ ‘What capability do we need to develop?’
Board intelligence. ‘What should we be asking the business?’ What format would help us analyse and synthesise the board intelligence?’ ‘How can we ensure the quality and timeliness of the intelligence presented to us?’ ‘How can we balance our need for concise board papers with a need for comprehensive evidence on which to base our strategic decisions?’
Board dynamics. ‘How should we all behave?’ ‘How do we behave?’ ‘What tone have we created as leaders of the business?’ ‘What environment have we created in the boardroom?’ ‘How well do we listen to others?’ ‘How effective is our strategic decision making?’
Board health. ‘How do we know whether we are healthy?’ ‘What do we think?’ ‘What do others think?’ ‘How do we intend improving our health?’ ‘How will we know if we have made any of those improvements?’ ‘Who will hold us to account?’
Investing in reflection, discussion and synthesis of insights helps to build a common agenda.