Governance - Board of Directors |
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By: Dr Neil Miller Posted: 2009-07-08 06:35:22 |
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With the introduction of Sarbanes-Oxley requirements and the analysis of the causes of the Global Financial Crisis, the need for and importance of an independent Board of Directors is clear. The Board is not directly involved with the day to day running of an organization, so it can stay focused on the external environment and ensure that the strategies required by the organization to suceed in the external environment are implemented.The CEO and other C level executives focus on the organization and implement operations and the strategies agreed by the Board. The organization's Executive regularly reports to the Board, so the effective implementation of Board direction can be assured.
With the accelerating rate of change, traditional methods of managing the work of the Board and its interaction with the Executive of their organization are often too slow to facilitate timely governance decisions. In particular, more timely feedback on the progress of Board directed strategies and more automation of Board work management processes are required to facilitate better, more timely, decision making.The common gap in time and detail between what is actually happening in an organization and what is reported to the Board needs to be closed. Technology is now available that keeps agreed strategies and organization work being done to implement the strategies aligned. It also allows aggregated information on actual strategic progress in an organization to flow to Board members in close to real-time. Consequently Board members can be assured that strategies are on track at and between Board meetings. Micro managing and the temptation to become involved in operations can be avoided by only allowing visibility to strategic progress information at an aggregated level. By directly relating aggregated progress information to what is actually happening in the organization, the likelihood of information being distorted or misunderstood by Board members is significantly reduced. The same technology (used to create a dynamic interface between the Board and the organization Executive) can also be used to streamline how Board members work together. Board processes can be agreed and the work required by each Board member can presented in an always up-to-date ToDo list. When a ToDo is completed, the progress of the relevant Board task can be updated and other Board members automatically informed; so everyone who needs to know is kept informed. Templates can be easily created from existing processes, so consistency is achieved and time is not wasted in redeveloping agreed processes. Templates (that can be distributed in seconds) can also be used for contingency and Board continuity plans. In summary, traditional largely manual Board processes can be streamlined with available technology to: •Facilitate a dynamic interface between the Board and the organization Executive •Ensure that timely, accurate decision making information is available on strategic progress in close to real-time from anywhere at any time. •Formalise Board work processes make it easy to apply them consistently •Develop contingency plans and distribute relevant plans in seconds •Provide relevant feedback automatically to each Board member •Automatically provide a customized ToDo list for each Board member that includes relevant actions required by Board members and the Executive. |
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