There is increasing pressure at the board level of all kinds of corporates to increase diversity and heterogeneity. There is also increasing divergence between companies’ governance and the execution of the same. A quiz was designed by INSEAD named Certificate in Corporate Governance to gauge the major challenges occurring in the same. Post the business intelligence grasped from this exercise, a list of twelve questions have been framed that companies must pose to themselves to determine where they stand. First of all, they must check whether the board maintains a fair balance between governance and execution. Then, does the board possess the capabilities to fulfill the duties. The next one must be about the periodicity of board meetings. This must also specifically address the chairperson’s periodicity in meetings with the management. The next few must gauge whether the chairperson is effective, can handle the pressing issues on the agenda, is competent and if not, whether the board is doing sufficient to make up for the deficiencies. The next thing to determine will be whether the board is making use of individual committees. The talent recruitment of board members must not be ad-hoc, but as per a robust process set. There must be an annual board review. Finally, one needs to gauge whether “Fair Process Leadership (FPL)” has been at play.

Source:https://knowledge.insead.edu/blog/insead-blog/12-questions-to-determine-board-effectiveness-6166

Uploaded Date:30 May 208