Boardroom Efficiency and Generative Governance

Efficiency in the boardroom is crucial in maximizing board performance. It requires a clear and concise meeting structure as well as continuous communication. It is based on a web-based portal that provides directors to access their meeting materials and allows them to discuss them with colleagues in real-time. It isn’t easy, particularly for boards that are short on time due to short director terms as well as continuous recruitment.

In an OnBoard webinar Corporate advisors Max Franchitto and Tamara Barr provided key strategies to ensure an optimum level of efficiency in the boardroom. They discussed ways to increase engagement and foster a diverse range of perspectives and skills. They also discussed ways to improve the board process and improve individual director performance.

Certain boardroom dynamics can be harmful to the ability of a board to practice an generative approach to governance. For example, an over desire to find consensus and an absence of critical thinking can result in groupthink and ineffectual conversations that hinder the quality of decision making. The tendency to dismiss an idea without fully understanding its foundation can also cause mistrust and undermine the efficiency of a board.

In order to avoid these problems, boards should maintain open communication with all directors, and provide them with an opportunity to share their opinions and views. Boards can achieve this by encouraging informal and constructive director communication between meetings, allowing opportunities for directors to find common interests outside of the boardroom, and by incorporating “hang time” on agendas of meetings so that newer members can meet their fellow directors.

https://usboardroom.com/virtual-data-rooms-a-new-era-for-m-a-deals-in-the-global-business-world/