How do you balance board skills with board composition and dynamics?

Saber o que se quer, buscando na miss?o a estratégia e a composi??o de seu Conselho. Na diversidade de sua composi??o, competência e habilidade de jogar o jogo juntos, retendo as vaidades, buscando os espa?os para colocar o contraponto e trazer o conjunto a decis?es comuns. Habilidades de todos e especialmente das lideran?as do Conselho como Presidência e VP assim como as lideran?as dos Comitês, envolvendo os executivos de maneira correta.

Assess your current board by creating a skills matrix to map existing competencies and identify gaps. Evaluate diversity in terms of gender, ethnicity, experience, and perspectives. Review board members' engagement and collaborative dynamics. Conduct performance evaluations and solicit feedback. Ensure alignment with strategic goals and adaptability to change. Strive for a balanced, cohesive, and versatile board that drives effective governance.

Balancing board skills with board composition and dynamics calls for a culture of board effectiveness. To do so requires regular board assessment, evaluation, and independent NEDs. Board composition is made up of the skillset needs of the board along with a governance structure that supports the inclusion of independent judgement to contribute to the board's remit on behalf of the entity and its shareholders. With assessment data, there is line of sight on the board's strengths and areas for development re: board skills. With the inclusion of iNEDs to board composition, they are capable to both serve as coach and referee to the other directors, and if a senior iNED, is senior enough to hold the chair's attention re: board dynamics.

Balancing board skills with existing composition and dynamics involves a strategic approach. Conduct a gap analysis to understand the current skillset and identify areas needing enhancement. This might include financial acumen, industry knowledge, or emerging technology expertise like AI. Consider the board's diversity in experience, perspective, and background to foster a robust decision-making environment. Integrate new skills without disrupting board cohesion by selecting individuals who not only bring expertise but also demonstrate the ability to collaborate and contribute to the board’s culture. Continuous education for existing members is also key to evolve the board's collective skillset.

Balancing board skills with composition and dynamics is vital for any NGO's success. To achieve this, focus on building a diverse board that reflects varied expertise and backgrounds. Clearly define roles, foster open communication, and establish a conflict resolution mechanism. Regularly assess performance, adhere to governance standards, and emphasize long-term strategic planning. This approach fosters effective decision-making and promotes the organization's mission.

Define the ideal number of board members and also the competencies required in totality within the board. Define the non-negotiables like for example ethical behavior, strategic thinking and ability to carry others with you, etc. Then the balance competencies need to be present in one, or preferably multiple board members. Towards the end of the exercise, check for diversity. For me, diversity in thinking amongst board members is most important, rather than diversity as a check box. Set parameters to review the board members' (including Chairman of the Board) performance every year in a transparent and independent manner.

The Board set the standards that cascade throughout the organisation. A Board with a strong commitment to diversity and inclusion through representation of the Board affirms this commitment. An organisation should consider how the board is structured when developing/updating its constitution defining office holder positions, co-chairs, mandatory retirement of board members, composition, gender balance, diversity, youth representation, etc. Additionally, a Board Skills Matrix should be expanded to include skills and capabilities such as diversity, lived experience, etc. I would argue that diversity is governance capability that needs to be defined and recruited for just like finance, risk management, fund raising, and other capabilities.

An effective board embodies diversity, expertise, and ethical leadership, with individuals possessing varied backgrounds and skills crucial to the organization's mission. It aligns with the organization's strategic plan, vision, mission, values, and considers essential skills, diversity, and attributes for good governance. Members, embracing adaptability and continuous learning, excel in risk management for organizational resilience. Governed by best practices, the board prioritizes stakeholder engagement, recognizing the value of diverse perspectives. With a well-defined leadership structure and a strong commitment to excellence, it steers the organization toward success and sustainability.

Board members should be able and willing to commit time and resources to the organization including attending meetings, participating in strategic planning sessions, and being available for consultation Board members should understand and are committed to upholding legal and ethical standards including conflict of interest policies and adherence to governance regulation Board members from various professional and life experiences can enhance creativity and innovation leading to more robust discussions and decision-making Board members with relevant industry experience can be invaluable The board should be able to work collaboratively while also being able to challenge and question decisions constructively

Encourage Diversity Aim for variety in the makeup of your board, encompassing not only a range of skills and knowledge but also a diversity of gender, race, age, and background. Diverse viewpoints and ideas can promote more fruitful debates and improved decision-making. Create a welcoming environment that encourages dissenting opinions to reduce the chance of "groupthink".

Recruiting and onboarding new board members is vital for governance rejuvenation, injecting diverse perspectives and enhancing collective intelligence. Diversity's role in the board acts as a catalyst for innovative thinking, improved decision-making, and alignment with stakeholders' varied needs. A diverse board signifies inclusivity in modern corporate governance. Actively pursuing diversity fulfills social responsibilities and strengthens the leadership team, amplifying resilience, agility and effectiveness in guiding sustained success. An open and thorough process for identifying, screening, and selecting potential board members, coupled with a comprehensive orientation and continuous training program, is important for effectiveness.

With a clear understanding of your ideal board, the focus shifts to recruiting and orienting new board members. Effective recruitment involves targeting individuals who possess the skills and qualities that complement the existing board composition. In my experience, leveraging networks, utilizing search firms, and engaging in targeted outreach are effective strategies. Once new members are on board, a comprehensive orientation program is crucial. This should cover the organization’s mission, strategic goals, governance processes, and expectations. Proper onboarding ensures that new members can contribute effectively from the start.

It is very important, though, to clarify what kind of board we are dealing with. Are we talking the board of a small community non-profit or are we talking the board of a multi-national public company. There will be very different expectations and level of commitment from within the organization and also the board room. In general, it is the Board Chair's responsibility to create a culture of belonging and where open discussion are welcome and the task of governance is respected. Having said that, I do think it can be valuable for board members of any organization to interact with operations to learn more and be able to steer strategies from the board room. It should not be reduced to the CEO or Executive Committee only.

All of this is very true and useful but where many Boards become dysfunctional is around appropriate involvement. Confusion around their advisory role at a global level of the organization rather than the program area, the day to day activities. The key is to find mechanisms that allow for meaningful involvement, not tokenism but at a higher up level. I have seen Board members think that they job is to question staff about management, or clients about service in ways that undermine authority and credibility.

A true engagement and collaboration among Board members, in my opinion, can only be ensured by the personal characteristics of the members. A high standing personality, with a strong background, will usually ensure the achievement of these goals. In any case, meetings will have to be regular and frequent, and the Board will have to ensure an adequate co-operation by the company's management. This last element has not to be neglected: the management often prefer Boards that have little control, leaves as much room as possible to the management itself. For this purpose, sometimes they even prefer if the Board lacks specific competences. Being “used” by management has to be absolutely avoided, of course.

Balancing board skills with composition and dynamics also requires fostering engagement and collaboration among board members. Creating an inclusive and collaborative environment is key to harnessing the full potential of the board. I’ve found that regular team-building activities, open communication channels, and structured meeting agendas can enhance engagement. Encouraging open dialogue, valuing diverse opinions, and building trust among members are essential for effective collaboration. This not only improves decision-making but also ensures that the board operates cohesively.

In order for evaluation to be seen as helpful, there needs to exist an expectation and open desire to be evaluated to be improved. If these do not exist and are set at the recruiting stage, evaluations are meaningless.

Optimizing board performance demands precise objectives, regular evaluations, and a diverse skill mix. Effective communication, ongoing training, and measurable metrics are essential. Well-organized meetings and swift conflict resolution are paramount. Regular board reviews, external evaluations, and stakeholder feedback provide a comprehensive performance understanding. Embracing adaptability, continual refinement, and succession planning are vital. These measures, coupled with a robust governance model, cultivate a high-performing board that steers the organization effectively.

Evaluation, in my opinion, means measuring. Measure how many real decisions a Board has taken, changes in the governance, strategic changes decided, new reports and metrics adopted, simplifications introduced, etc. If the Board does not work effectively, or does not reckon with the real issues, or is incapable of finding common agreed positions, it will come out from those numbers. It is instead much more difficult to evaluate the quality of the above, which can be assessed, I believe, only in a longer-run. It could well be a self-assessment, made in a specific, dedicated session, every year or even less frequently (three years could be a reasonable period in my mind).

Continuous evaluation and improvement are critical to maintaining a balanced and effective board. Regular performance assessments, both at the individual and board levels, provide valuable insights into what’s working well and where improvements are needed. In my experience, using tools such as self-assessments, peer reviews, and external evaluations can provide a comprehensive view of board performance. The feedback obtained should be used to implement targeted development plans and to make necessary adjustments in board composition and dynamics.

I firmly believe that Board Development should always include a section on Board/CEO/Staff relations and communication. The organization as a whole must sing together or the song is off tune.

In my experience a well constructed and designed Governance Handbook is a key tool to ensure an efficient Board performance. The benefit of having a common and clear Handbook allows Consistency, Transparency and eventually better Performance.

Balancing board skills, composition, and dynamics is crucial for effective governance. Considerations include identifying required skills, assessing board composition, succession planning, transparent recruitment processes, comprehensive orientation and development, fostering collaborative dynamics, and conducting regular board evaluations. Achieving this balance requires ongoing assessment, adaptation, and a commitment to continuous improvement.

There are several other considerations for balancing board skills with composition and dynamics. Flexibility and adaptability are crucial as the needs of the organization evolve. It’s important to periodically revisit and update the board’s skills matrix and composition criteria to ensure alignment with the organization’s changing strategic priorities. Additionally, fostering a culture of continuous learning and development within the board can enhance overall effectiveness. Board retreats, ongoing education sessions, and exposure to industry trends can keep board members informed and engaged. Finally, succession planning should be an integral part of board governance to ensure continuity and preparedness for future challenges.