Recently, the National Association of Corporate Directors published the
NACD’s 2011 Public Governance Survey Report which reports that the top 5 priorities for boards include:
| Strategic planning and oversight | 72.1% |
| Corporate Performance & Valuation | 40.6% |
| Risk and Crisis Oversight | 27.1% |
| Executive Talent Management & Leadership Development | 25.8% |
| CEO Succession | 25% |
These topics/issues are truly governance issues.
How does that list match with your board’s priorities?
We probably could agree that boards which address these issues are practicing excellence in governance.
Boards which do not address these issues currently can reach out for assistance. Also, there are tools to help boards complete these tasks while conserving time and energy.
Some of those tools include:
The workbook which accompanies Superior Performance for your governing body contains all of the worksheets a board needs to facilitate its work.
Each of the topics outlined in this survey are indeed crucial for board success.
Strategic Plan
An excellent strategic plan is realistic, focused, achievable and measurable. Sometimes it is easier to develop a plan than it is to maintain focus on the plan, make timely decision when corrective action is required, and ensure the resources are in place to implement the plan.
Board Evaluation
What is the value of your board? How does the organization benefit?
A sample board evaluation tool which can be customized for your board is found in Ten Steps to the Decision Making Model of Governance.
The results of the evaluation will advise the board on its effectiveness and whether it is leaving a constructive legacy.
Risks and Risk Oversight
It is easy to be reactive. Boards which practice excellence in governance are proactive. They evaluate risks and make decision when they know their options, the associated pros and cons of each option, and that they are free to discuss their concerns openly and frankly.
Leadership Development
How much does your board spend on leadership development? That answer may provide valuable information about the degree to which the board actually values leadership development.
CEO Succession
Certain boards are unable to choose their CEO without the input of other entities such as provincial or state governments. Other boards are assigned their CEO. Even given these circumstances, there are many boards which select their CEOs.
They are wholely and solely accountable for that person’s orientation and evaluation. In those cases, it is imperative to know the key characteristics of a successful CEO and plan for the CEO’s replacement.
All of these areas are taken seriously by boards. That is why boards are the best tool know to decentralize decision making and place representation close to constituents.
