Question

Discuss factors that affect Board effectiveness and suggest any 5 measures you would recommend to enhance board effectiveness.

Answer 1

Board effectiveness is one of the most important aspect of an organisation as overall running of an organisation depends upon its boards.

Some of the factors that affect board effectiveness are as follows -

• Effectiveness of board is highly dependent upon its members and their cooperation.
• Team work of all the members of board
• definition of all the mission and vision of the organisation
• succession plans
• Allocation of all the capitals and its utilisation
• Acquisitions
• Orientation and composition of board
• Accountability and responsibility of members of board

Five measures in order to enhance board effectiveness are as follows -

1. Proper orientation and composition of board and by making good policies for the organisation
2. Development and coping of strategies of the organisation with the changing working environments and technologies
3. Proper balancing of all the aspects of compliance of board's work and it's responsibilities
4. Proper concern on all the feedback received by all the pain points of the organisation
5. Proper and regular self evaluation of the effectiveness of board.