Polling Your Board To Boost Corporate Governance

Paul Davis, Founder, Bank Slate.
I recently wrote an article that highlighted the habits of high-performing boards and explored the traits that set some companies apart from others in terms of corporate governance.
It can take exceptional effort to achieve high levels of boardroom functionality. That is why it is essential for most boards to periodically assess their culture and vision, particularly through the lens of the company’s strategic plan and the prism of a rapidly changing business environment.
Developing A Questionnaire For Board Members
I would assert that the process of evaluating board dynamics should begin by taking the pulse of individual directors in the form of a questionnaire that examines their strengths and weaknesses, along with their views of the company, management and boardroom politics.
The primary objective is to gain a thorough understanding of how a board functions and its alignment with the company’s strategic goals. It is important to note that responses are anonymous to get the best buy-in from directors. During this process, I recommend aiming to understand director perspectives in the following areas:
Corporate Governance
Ask participants to identify key governance issues such as board experience and diversity, evolving needs, succession planning and interpersonal dynamics—critical factors that influence a company’s effectiveness. Understanding these issues lets the board prioritize initiatives that enhance decision-making and organizational resilience. As part of the process, seek open-ended responses to reveal a consensus on the need for innovation, market expansion, community involvement and sustainability.
Risk Management
Use the questionnaire to dig deep into each director’s view of the company’s potential exposures, both financial and reputational. Seek to understand what they view as the biggest risks, having them score areas such as competition, cybersecurity and regulation. You also want to know how directors prioritize these areas as a function of risk mitigation.
Measuring Success
The evaluation should also aim to see if each director understands the company’s key performance indicators (KPIs). Which KPIs gain the most focus? Which ones are underperforming board expectations? This investigation helps you understand areas of focus in terms of operational efficiency and stakeholder engagement.
Strategic Oversight
At this stage, the goal is to gauge how directors view the management team and the board’s role in holding executives accountable. You want to understand the nature of communication with executives and among directors. What do they think of the strategic plan? Is the company staying true to the plan? Do they understand what the company aims to accomplish? I prefer open-ended responses about areas such as technology adoption and talent management to identify gaps that the board should address.
SWOT Analysis
A well-informed board should have a firm grasp on their company’s strengths and weaknesses, along with any potential opportunities and looming threats (SWOTs). What are their thoughts about the company’s brand reputation and its positioning in the market? What challenges must the company confront? Are there new markets or strategic opportunities worth exploring? What, if anything, is holding the company back from meeting its fullest potential?
In Conclusion
A comprehensive board-values assessment can produce significant insights into a company’s governance framework, risk management practices and strategic oversight. The findings suggest areas for improvement, particularly when it comes to enhancing board diversity, fostering open communication and addressing identified weaknesses. I recommend following up the questionnaire with one-on-one meetings with directors designed to peel the onion back further and gain greater perspectives.
By acting on these findings, the board can strengthen its governance practices and align itself more closely with the company’s broader strategic objectives, ultimately enhancing overall performance and building resilience.
The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
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