Five Pillars of Good Board Management

Good board management takes a combination of brilliance in all the pillars. Usually it takes some time, in cases where not a few iterations, to get things right, but it is essential just for sustained achievement.

Great boards are very clear about their purpose, duties and legal duties as directors, as well as the authority they may have delegated to their committees and staff. They understand how to engage with key stakeholders and ask difficult questions, and maybe they are committed to the organisation.

Additionally, they know what information they need to make great decisions, and insist that must be presented in the right format, on the right time. They don’t rely exclusively on administration for information and frequently seek reporting on buyer, investor and funder behaviour, trends and related monetary headwinds and opportunities. Sometimes they go on discipline trips to see the company for, and rely on board committees and independent advisers for specialist knowledge.

They have healthy dissent and respect the opinions of all stakeholders, also those with which they will disagree. That they encourage outspoken and well intentioned conversations that challenge presumptions and check the information they are given. In fact , they definitely engage with stakeholders in ways that were unthinkable some three years ago. For example , as mentioned at Diligent’s 2022 Modern Governance Summit, best practice engagement for boards right now includes a larger range of buyers and other stakeholders who deliver their views to aboard discussions. This allows boards to take full bank account of the larger stakeholder effect of their selections.