Talk to us today about how we can help your board focus on high performance.
Board and director effectiveness
APRA’s review of CBA’s culture, the 2018 Hayne Royal Commission, the introduction of BEAR (Banking Executive Accountability Regime), and the rise in investor activism and class actions, have all combined to set a much higher bar for the effectiveness and performance of all Australian boards whether financial services organisations or otherwise. The changed environment resulting in an increased scrutiny of boards across the globe is similar.
The lessons are many and include:
- do not just go through the motions. Run a much more relevant and differentiated board agenda that focuses on your organisation’s main challenges and priorities
- monitor your organisation’s culture ensuring that appropriate ongoing cultural change takes place – setting the right tone from the top
- be much more rigorous including in challenging management – including by adding new perspectives to discussions
- help your organisation become more customer centric including more attuned to the views of dissatisfied customers
- take a broader perspective as to what sustainable high performance for your organisation really means – including that the long term interests of your employees, customers, shareholders and other stakeholders are inseparable.
How does your board compare and is it as effective as it can be?
Our expertise and experience include carrying out and overseeing in excess of 250 board and committee evaluations for ASX and other listed corporations, private companies, government entities and not-for-profit organisations of all sizes.
Because we have carried out so many evaluations, which almost certainly includes many organisations just like yours, we can very quickly determine the areas where your board is more effective than other boards and those areas where your board could improve its effectiveness.
Our deep experience and expertise make all the difference.
A fit-for-purpose and tailored approach to your review
Most boards do an extensive externally facilitated and independent review of the effectiveness of the board every two or three years and more of a light touch internal or external review in the intervening years. We facilitate many different reviews which can include the following components:
- A short, medium or comprehensive benchmarked board survey (and a corresponding benchmarked board effectiveness report). One of these surveys is often done by directors as well as by executives that regularly attend board meetings.
- A short bespoke pulse survey is often developed for an intervening year to measure the extent of improvements (or otherwise) in the main areas where recommendations were made during a previous review
- A structured interview of around one hour with the directors and executives that completed the survey
- A written report synthesising the views of interviewees and considering the results of the benchmarked survey and making carefully crafted recommendations for improvement
- An interactive debrief of the board in relation to our reports and recommendations which is where much of the value lies
- Ongoing assistance and advice on how to implement the recommendations made
We also conduct reviews of:
- the effectiveness of individual director by way of interviews or more normally by conducting a Director Effectiveness Survey followed by a pre-agreed debrief process
- the effectiveness of your CEO by way of interviews with key stakeholders including directors and leadership team members or by conducting a CEO Effectiveness Survey comprising up to 35 items that are important to a CEO’s effectiveness
- the effectiveness of board committees using an interview process and/or by using our benchmarked Audit Committee Effectiveness Survey or Risk Committee Effectiveness Survey
World class framework
What our clients say
As a Board we were confident we performed relatively well but the review clearly recommended areas of improvement to take us to the next level.