Large companies need diverse Boards with members from various backgrounds and industries to ensure all relevant matters are addressed from all necessary perspectives.
Source: Different is better; Why diversity matters in the Boardroom, Russel Reynolds Associates
Board Renewal
versus
Board Replacement
To effectively address issues such as:
- Organisational Growth
- Changes to industries and disruptions
- Regulatory and compliance landscape
- Tenure considerations
- Gender
- Transformation
It is essential to strategically plan to renew the Board over time, rather than look for replacements as incumbents step off the Board.
This is not only true for members of the Board, but also for the positions of Chair, Chairs of Committees and Committee Members.
Our Approach:
- All Organisations have strategic imperatives indicating what the aspirations and ideals are.
- These views of the future allow the opportunity to describe the state of the Organisation in five years or so, should the strategy be successful.
- This is not a perfect forecast given the many stumbling blocks or new opportunities that come across the path of any Organisation in five years, but it is more accurate than not doing it.
- The approach to Board renewal and succession should take these future views into account and determine what kind of Board should lead the Organisation at that stage.
- This should not only be in terms of skills, experience, characteristics, and gender, but also with respect to composition of Committees and Chairs of Committees.
- If this ‘ideal’ Board is mapped with the current state and the foreseen changes in the Board composition over the next few years it becomes possible for the Board to plan ahead and ensure Board renewal is smooth and evolving towards an ideal.
Board Renewal Application
Core Suitability Evaluations
Collective Suitability Assessment of Boards
The Board Practice Collective Suitability Assessment Matrix tool provides a customised collective assessment of the Knowledge, Skills and Experience of the Board as a whole and is effective in giving boards an insightful overview of the mix of skills & expertise currently being represented on their Board against the competencies requirements of their Organisation’s Long Term Strategy. Apart from identifying areas for training and development to enhance Board excellence, it also helps appropriately orientate a Board in defining the required profiles of new Board Members.
Collective Suitability Assessment of Board Committees
The Board Practice Collective Suitability Assessment of Board Committees is a critical assessment tool for every Board seeking to deliver overall effectiveness through the effectiveness of its Committees. It follows an assessment process carried out against customised criteria and matrices to ensure that respective Committees are collectively competent on an on-going basis and collaborate together effectively to make sure they are delivering performance excellence along with alignment throughout the Board on governance, systemic risk, long-term strategy and business modelling.