2
Hours a year spent on CEO succession planning
30% / 70% 50%
No / Yes Does the board have an annual evaluation?
The reality is that managing the make-up of the board is a crucial responsibility for any chairman. They have to continually challenge the existing gene pool. More of the same is not an answer.
Subtle changes can make important diff erences. For example, having a CFO as well as the CEO on the board can off er a very diff erent executive view.
Over recent years performance evaluations of boards have had an impact on board performance – particularly in the areas of team dynamics, processes, culture, competencies and behaviour.
According to the National Association of Corporate Directors, more than 90% of boards conduct full board evaluations and almost 83% conduct committee evaluations. But, the same survey found that less than half of boards evaluate individual directors and only slightly over 10% evaluate board members as apart of a 360-degree review.11
Our own research found that 70% of companies have an annual performance evaluation for the board. A sizable number (16%) never undertake an evaluation. External experts are used, but unevenly. Overall, one- third of companies reported using external consultants or facilitators as part of board evaluation at least once every two years. At the same time, 60% of respondents in Portugal and 40% in Sweden never used them.
Dynamic governance demands robust and continual evaluation of the board’s performance as well as the identifi cation and development of talented people. Neglecting these elements of dynamic governance comes with a heavy price.
11 National Association of Corporate Directors, 2011 Governance Survey, 2011
“In the long run, the systematic development of stars is the most eff ective strategy to create a sustainable competitive advantage.”
Boards have documented skills that will be required by the next CEO
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48