The FRC’s guidance on board effectiveness says that “an effective board develops and promotes its collective vision of the company’s purpose, its culture, its values and the behaviours it wishes to promote in conducting its business”. A board also provides clear direction, ethical leadership, high quality decision making and oversees the creation of performance cultures. As a board member one might expect to challenge and be challenged, while being an effective team player.
The pressure on boards is increasing while the perceived reality of board effectiveness is diminishing: “The amount of time board directors spend on their work and commit to strategy is rising. But in a new survey, few respondents rate their boards as effective at most tasks or report good feedback or training practices.” (www.mckinsey.com).