Why is Board Performance Essential for Organisational Success?

Performance excellence in the boardroom is the cornerstone of a successful organisation. This article will explore the importance board performance, its assessment and ways to ensure its optimisation.

Key Points

  • Understanding the significance of board performance in an organisation.
  • The role of board performance assessments in organisational development.
  • Deploying KPIs for board of directors to measure director-level performance.



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What Constitutes Board Performance?

A board's performance is determined by the effectiveness of its leadership. Effective performance in the boardroom lays the foundation for the organisation's growth, sustainability and how it handles challenges. 

What is the Role of Board Performance Assessments?

Board performance assessments play a key role in developing board efficiency. A performance assessment aids in identifying the strengths, weaknesses, opportunities, and threats related to the board’s operations. Further, these assessments provide feedback on individual director performance and the dynamics of the board as a whole. This feedback cycle forms an integral part of the AICD's board performance improvement program BOARD ADVANCE, which aims to enhance the effectiveness of the board.

Are KPIs for Board of Directors Important?

Just as organisations use KPIs to measure and track the performance of their operational, marketing and sales activities, developmental KPIs for board of directors hold vital importance. These KPIs assess the director-level performance and the effectiveness of a director's decisions. They might include metrics around leadership, coordination with staff, competence in the role, or others according to the specific nature and needs of the organisation.

How does the AICD Aid in Enhancing Board Performance?

At the AICD, we offer support to directors and board in strengthening board performance. Our courses, programs, and tools are designed to gear up your directors with the needed skills and knowledge to drive better performance. BOARD ADVANCE specialises in equipping boards with the understanding, insight and guidance needed to unlock their performance. Boardroom Mastery is a simulation program developed for directors to improve their understanding of self and peers for increased effectiveness.

In conclusion, optimising board performance lies at the heart of success and growth for any organisation. At AICD, we strive for excellence in governance and board performance, providing an array of courses, tools, and resources for your board of directors.

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