The nine questions you need to ask to take your board from good to great

The average S&P 500 board has four standing committees. It’s worth periodically assessing standing committees and reorganizing to address the changing business landscape, company business model and expanding risks. If committees shift, so will charters, the public documents that establish committees’ roles and responsibilities.

Keys to effectiveness:

• Periodically reassess risk oversight allocation
• Be smart about cross-committee service and committee member rotation
• Prioritize crisp committee readout
• Create new committees selectively

No matter who leads the board or committee, that person needs to display integrity and a clear vision for the role. They must be able to facilitate important discussions among board members, make sure that all voices are heard and deliver difficult messages when necessary. And they must be open to other members’ feedback and commentary on their leadership approach.

Keys to effectiveness:

• Be ready and willing to deliver tough messages
• Have your next board and committee chairs in waiting
• Clearly define board leadership’s role in a crisis

While the board owns its agenda, the CEO and board leadership should meet in advance of full board meetings to develop the agenda and identify topics likely to involve a challenging discussion or important decision. This applies to committee chairs too who should also meet in advance with management and/or relevant third parties (e.g., external auditors).

Keys to effectiveness:

• Own the board agenda
• Carefully consider the order of topics to be covered
• Save time on recurring items with a “consent” agenda
• Hold executive sessions before and after board and committee meetings

Executive summaries are critical, but board leadership should ask management to also include key questions or specific areas of focus for the board to consider as they review materials.

Keys to effectiveness:

• Make sure board materials are customized
• Get dashboards
• Have pre-read materials anchor meeting discussions without dominating them
• Give management feedback on materials’ quality and timeliness

Problematic group dynamics can derail all kinds of teams, and boards are no exception. Dysfunctional board dynamics can hinder open dialogue and sharing of diverse viewpoints, which ultimately can lead to good boards making bad decisions. A focus on improving board culture and team dynamics can lead to more effective problem-solving and decision making.

Keys to effectiveness:

• Provide continual feedback to directors
• Formalize a mentoring program for new directors
• Add behavioral questions to board assessments

Board meetings provide a unique opportunity to engage directly with the management team. But since these interactions are condensed and focused on high-stakes decision-making, it’s important for boards to prioritize finding ways to strengthen these relationships while retaining the ability to challenge management and pose tough questions.

Keys to effectiveness:

• Meet with a broader group of executives
• Change the setting to change the dynamic
• Develop relationships with management outside of the boardroom

Too many directors view their annual performance assessment as a compliance exercise. An effective approach turns the assessment into performance feedback with the goal of continuous improvement. This requires boards to re-envision their goals, assessment tools, processes and board leadership’s approach to providing ongoing feedback. The process should aim to address problem areas once they’re identified, with follow-up actions and timelines along with who is responsible for each action.

Keys to effectiveness:

• Don’t fear individual assessments
• Address the elephant in the room
• Get an external viewpoint
• Consider giving stakeholders more insights into your process

Peer networking, soliciting outside views, attending conferences and scheduling deep-dive sessions with management on topics can help directors stay current and gain deeper insights to perform their oversight responsibilities. Some boards mandate and provide budgets for external continuing education; others informally encourage it.

Keys to effectiveness:

• Make continuing education a part of every board meeting
• Prioritize the most important deep-dive education topics
• Invite outsiders for a broader view