How do you know when you don’t have effective governance?
- The Board members are not happy with the quality and/or timeliness of the information they receive
- Distrust between management and the board becomes evident
- The Board does not have an ethical framework
- Board member discover ‘surprises’ that have not been brought to their attention
- The CEO, Chair or a board member dominates the decision-making environment
- Lack of independence is evident amongst board members
- An imbalance of competencies around the table
- The CEO and the Chair do not adopt a complementary leadership style rather a competitive style
- Risk management is weak or lacking
- KPIs and measurements are absent
- Chair does not develop a learning or culture that is striving to excel
- Meetings are either over-structured or lack structure
- Activity is viewed independent of the organisation’s strategic intent and the agreed strategic intent is not being permeated throughout the organisation
- Board members are not 'all over the numbers and data'
- A Governance Manual is lacking or non-existent
- High employee turnover or low morale exists in the organisation
- Board members adopt a silo mentality or become single focussed
- The Board is too big and turns into a ratifying unit to sign off management recommendations as opposed to leading the organisation forward
- Costs rise due to duplication of effect
- Shareholders and/or stakeholders lack confidence in the Board and its Management.