05 Aug Maximize the effectiveness of your Board: Director development and training
Boards of Directors provide the leadership and accountability that determine the success of the company or organization. As a director, you are under the greatest pressure, and are more likely to suffer from stress and an out of balance work/home life. Directors undertake a major role that includes many responsibilities; many of these responsibilities are enforced by regulators whereas some are imposed by the stakeholders of the organization you are asked to lead.
Especially for cases of newly appointed Boards , each member brings along their unique and individual competences. Professionalism in the boardroom plays a key part in the prosperity of any organisation. Directors and boards sit at the top of an organisation and are responsible for leadership and corporate governance, both of which trickle down to the rest of the organisational structure.
The need for sound Corporate Governance
Cyprus’ bid to become a leading global financial and business hub dictates it must develop, adopt and promote internationally tested best-practices in corporate governance within its companies. In addition, institutional investors, both local and international, would rather establish business relationships and invest in an economy where good corporate governance is important before making an investment decision.
The Need for Director Training and Development
- A Board is the apex body collectively responsible for corporate governance and success of a company
- An Effective board is central to good governance
- Skills, knowledge, mix and independence of directors central to board effectiveness
- Increasing demands on boards and individual directors
- Board committees required by law
- Investor trust
- Skills/knowledge levels among directors and standards of corporate governance vary considerably
- Concerns on director skills and independence
- Compliance with regulators
Features of an Effective Board
- Have relevant collective skills, knowledge, and experience
- Work cohesively as a team
- Have sufficient degree of independence and integrity
- Be prepared to devote sufficient time and resources to the affairs of the company
- Can provide the strategic and entrepreneurial leadership to the company
- Have a comprehensive and formal director induction programme
- Have a programme of continuing professional development for directors
- Have formal board performance evaluation and individual director appraisal
- Have well defined plans and processes for board succession
For the organization individual directors and collectively as a board effectiveness and overall results are important. Organizations need to ask the following questions.
- How effective is your organization’s board?
- What do you do to select and induct new directors and what do you do to maintain ongoing development?
- Have you recently undertaken an audit of board processes and behaviors?
- How do you appraise directors – both executive and non-executive?
- Do you have a director development programme?
EIMF is committed to providing learning opportunities for directors. Training and development of individual directors and the board as a whole is an important investment for any organisation that intends to operate at its greatest effectiveness. Find out about Director Development Programme.