Appraising and developing the effectiveness of boards and their directors

A team from Henley Management College conducted a study on Standards of Good Practice for UK Boards of Directors. Results show that boards that wish to enhance their effectiveness should examine themselves in relation to three areas: organizational processes for managing the board, personal competences each member needs and tasks that need to be performed. The processes required for organizing and running the board include definition of the extent of the powers, roles and responsibilities of the board and the management; assessment of proper board composition and organization; and planning and management of the board conduct. In addition, each member must possess such personal skills as strategic perception and decision-making, analytical understanding, board management, and communication. Lastly, the board should perform certain tasks, such as leading the general direction of the company, directing the corporate strategy and structure, and delegating management.