The board shapes the purpose and values of a business. For smaller listed companies, in particular, where investors are often seeking share prices growth, striking the right balance between entrepreneurship and effective risk management is crucial to achieving sustainable success.
Leading boards recognise that 'business as usual' nowadays involves operating in conditions of complexity, uncertainty and continual change. They are constantly seeking to improve: sometimes through steady incremental innovation, other times by embracing the challenges of transformational change.
A board effectiveness review enables a board to stand back and assess its strengths and areas for development and this questionnaire is designed to help boards achieve that in a practical, time effective way.
To maximise the value from this review it is suggested that:
- All members of the board complete the questionnaire within a set time period (two weeks, for example)
- The board looks at its average score in each of the 12 sections and its top 5 and lowest 5 scores to individual questions in order to identify areas of strength and areas of development.
- The board considers those questions where there is a significant range of responses, especially where executive board members and independent NEDs have divergent views, and understands the reason for them.
- The board prepare an action plan, with an implementation timeline.
For more information or to discuss the findings, please contact Anthony Carey, Partner, UK Head of Board Practice at Mazars by email email@example.com or by phone 020 7063 4411.