Creating strong company boards
The 2022 Annual Corporate Directors Survey from PwC reveals some interesting findings around #BoardPerformance:
#Directors are increasingly critical of peer performance with almost half of directors (48%) thinking that one or more directors on their board should be replaced.
If you think that is bad enough, 19% would actually replace two or more of their fellow directors.
What’s more, directors are more likely to identify performance-related issues with their peers. Almost one in five (19%) say that fellow board members are reluctant to challenge management—up from 12% last year. Directors are also more likely to identify peers who overstep the bounds of their authority (17%, up from 11%).
We know that an effective board is crucial to the success of the organisation thanks to another report from Grant Thornton LLP (US). It suggests that organisations with better governance outperform on multiple fronts. In terms of value creation, they:
* Generate 3.4x more cash flow from their operations
* Are 43% more efficient at making and selling products or services.
* Generate double the return for shareholders
Once you have identified and selected the right board members, how to go about making sure that they hit the ground running and quickly move to be most effective in their new roles?
Consider offering executive coaching to manage the transition into the new role easier and more effectively to board members and directors when entering a new role.
(Credit to Navid Nazemian, Executive Transitions)