Boardroom Efficiency and Generative Governance
The efficiency of the boardroom is vital in maximizing board performance. It requires an organized and clear meeting structure, continuous communication, and thorough preparation. It also requires a central platform that allows directors to access their documents for meetings and to discuss them with colleagues online in real-time. These goals are difficult to achieve, especially for boards with a limited time due shorter director terms and constant recruitment.
In an OnBoard webinar Corporate advisors Max Franchitto and Tamara Barr presented key strategies to ensure a high level of boardroom efficiency. They discussed how to improve engagement and develop a diverse range of perspectives and skills. They also discussed ways to improve the board processes and boost the individual director’s performance.
Some boardroom dynamics are toxic to the capacity of a board member to conduct democratic governance. For instance, an excessive desire to reach consensus and a lack of focus on critical thinking can lead to discussions that are ineffective and hinder the quality of decision making. The tendency to dismiss an argument without having a thorough understanding of its underlying causes can cause mistrust and undermine the effectiveness of a board.
To avoid these problems, it’s essential for boards to be open in its communication and provide a platform for all directors to express their opinions and perspectives. Boards can do this by encouraging constructive and informal director communications between meetings, providing the directors with opportunities to explore common interests outside the boardroom, and by including “hang time” on agendas for meetings so that newer members can become acquainted with their colleagues.