5 Steps to Improve Your Board of Directors / Advisors Performance

Posted in Board Development by Jim
15 Jul

The company is always under strategic review by the Board to improve their performance. The Board is almost never given the same challenge and it may be time for the board assessment.

The five steps include:

  1. By-law review The corporate by-laws for the board were most likely developed years ago and may have never been looked at since. The one area that is usually overlooked in making the by-laws is how to exit existing board members with the least amount of controversy. There are many board members who continue to serve because the CEO does not know how to gracefully have them resign.
  2. Compensation review Every two years the board compensation should be reviewed to make sure that it is in-line with the market. Additionally the compensation plan keeps the board members in alignment of corporate and shareholder goals.
  3. Committee review Are the right people on the right committees? It may be time to move some people around so they are both able to contribute and expand their knowledge of the company. Potential committees to add are for technology, risk, or business growth.
  4. 360 review of the directors/advisors Every 2-3 years a 360 review should be done to make sure that the board is in alignment from the inside.
  5. Board development Develop a Director/advisor profile that measures current board members and is the template to use in developing a profile for new members when they join the board.

These five actions are not difficult to execute and will lead to a higher performing board going forward. Let us know your comments or questions for your board assessment by calling or clicking here.