Board Performance Review Insights for 2022
As we continue to provide our Board Performance Review services in the second half of 2022, it is timely to reflect and review on key insights that have been common across many Boards in their evaluations at the end of the financial year. So, what have boards been reflecting on over the past year and what are the key focus areas for the next 12 months?
Assessing organisational culture
Organisational culture is something that is difficult to assess from a Board perspective when face-to-face interactions have been limited over the past two years. Often organisational culture assessment is complemented by informal interactions with management and staff, such as pulse checks, along with formal reporting to the Board. The fabric of an organisations culture may have changed as the distance between employees through virtual modes of work has meant it has been harder to keep tabs on the ‘norms’ of the organisation. The way people work has significantly changed over the past two years and Directors want to understand how this has impacted the organisational culture.
With restrictions easing, Board directors are keen to get back in touch with in person functions to assist in their assessment of organisational culture.
Staff recruitment, wellbeing and workload
Without getting into the operational detail, Boards are looking to ensure appropriate strategies are in place to manage staff recruitment, wellbeing and workload as organisation’s navigate their way through managing employment strategies in the current environment.
With the unemployment rate at its lowest in almost 50 years, its critical strategies are contemporary, creative and consistent with current trends and practices for employee recruitment and retention.
Succession planning is also a key area of focus for Board’s as they navigate employee and management changes due to many factors including retirement of long serving experienced personnel and the ‘great resignation’.
Board meetings format
Love them or hate them, in most cases Boards are looking to retain the virtual format in at least some of their Board meetings. The virtual format has given busy directors back their time as well as decreased costs with less travel. It has also opened up the pool of recruitment of new Board directors as it is not necessarily a requirement to travel to the organisation’s headquarters for each Board meeting.
Getting the balance right with the appropriate mix of virtual, hybrid and in person board meetings into the annual Board calendar and what suits the organisation best balancing individual director preferences is a key conversation to have.
Staying connected
Enhancing relationships between Board Directors, Management and key stakeholders is a priority in the short term as organisations look to spend time with each other in person through formal and informal functions, events and meetings.
Whilst acknowledging the benefits of virtual working, it has made enhancing and strengthening key relationships difficult, particularly with new Directors and Executives.
Strategy review
The last two years has seen a huge change in many factors of society – how we work, how we consume, what we prioritise. It is critical organisations respond to the changing factors in society to ensure strategies remain consistent with these changes which paves the way for creative and innovative ways to achieve the organisation’s goals and purpose.
Boards are conducting more strategic sessions as they navigate through the changing opportunities and risks that present themselves at this extraordinary time of change throughout society.
Is your Board looking to conduct an external Board Performance Review this year? Get in touch with us to find out more about our 5 step approach to Board Performance Review.