It is tempting to think of a board as being governed by charters, mandates and codes, however the reality is that a board is a social entity whose decisions are as much influenced by the informal culture, values and beliefs at play as it is the formal roles, processes and structures in place. Which is why our methodology considers both.
Strategy is both formal and informal as directors’ beliefs will influence decision-making as much as formal targets and mandates.
Culture is both informal and formal as how the board conducts itself will not only be governed by the official charter but also the values driving behaviour.
- Culture: how is the behaviour of the board impacting on the way it gets things done?
- Role: what is the board’s role and how does it exercise authority and delegate accountability ?
- Processes: are decision-making, oversight and organisational processes working effectively?
- Strategy: is the board focusing on the right things in the right way and forward-thinking enough?
- Beliefs: which spoken or unspoken beliefs are influencing and driving decision-making?
- Values: are collective values shaping the boards decisions and judgements made as a unitary board
We consider all of these elements throughout each of the following board functions:
- Decision Making: when the board is engaged in deciding on key strategic issues
- Oversight when the directors are concerned with performance, risk and compliance
- Board Administration: when the board manages itself, and director contributions