Catherine Nelson, NACD.DC’s Post

Bridging the gap: Comparing board and C-suite perspectives How effective is the board? It depends on who you ask In a time of change for many organizations, two recent PwC surveys show that boards and the C-suite don’t always see eye-to-eye on some key topics. We compared the results of our Annual Corporate Directors Survey (ACDS) and Board effectiveness: A survey of the C-suite. The findings show that directors and executives have different views on topics such as board effectiveness, composition, refreshment, board understanding and knowledge of key business risks, and the ability of boards to guide their companies through a time of crisis.  We’ve identified five areas where directors’ views differ substantially from those in the C-suite. Boards should view each of these as an opportunity for productive discussion that can ultimately strengthen the relationship between them and management. 1) Does my board have the right expertise to provide future-ready governance? 2) How can my board overcome the obstacles of making needed composition changes? 3) Are my board colleagues fully committed to performing their oversight responsibilities? 4) Is my board providing effective oversight of emerging risks? 5) Has my board done everything it can to prepare to lead during a crisis? https://lnkd.in/gWZHnqN6

Always good to know that the leadership "at the top" are thinking and concerned about... here they are: Key Findings: 1. Economic indicators: Stubborn #inflation, high interest rates and a tight #labormarket top the list of performance #detractors in 2023—and for 2024, directors listed the business cycle as most likely to dictate #strategy. 2. Strategic #governance: Despite the flow of #disruption in recent years, only 5 percent of directors have listed enhancing #resilience as a top priority in 2024. 3: Management oversight: 63 percent of directors say their board could be more impactful in its oversight of management if it could #proactively #anticipate #disruption . 4: Board #readiness: The most sought-after #skills in the boardroom remain C-Suite and industry expertise, as nearly half of directors say they can fill gaps elsewhere with third-party subject matter experts. 5: Shareholder engagement: 41 percent say #shareholder #activism has created more awareness for the need for good #governance in the U.S., though the same proportion also say shareholders should be restricted from advisory votes and other transparency rights that second-guess board decisions on company operations. Access the full report below... McIndoe Risk Advisory LLC

Let me ask, is your board fit for the future, or stuck in the past? Today’s boards face expanded roles as corporate strategies adapt to new challenges. However, PwC's survey shows only 28% of executives feel their boards have the right skills. Executives prioritize industry and environmental expertise, while directors focus on traditional areas like finance. How can we bridge the gap? Well, this disconnect necessitates collaboration: executives should advocate for upskilling, and boards must emphasize high-risk areas and engage external experts. #BoardGovernance #Csuite #Collaboration

Boards are evolving and adapting to changing times by enhancing their strategic value and preparing for the future. EY's Financial Services Executive and Board Network shares the latest insights on "Three trends impacting board composition". Stay ahead of the curve and learn about the shifts in composition and succession strategies that are shaping the future of corporate governance. Check out the article now! #boardcomposition #corporategovernance #successionplanning https://lnkd.in/e6BiQBEB Sarah Francis

Governance and Board Effectiveness, In a 2015 article (link below) which drew on my Doctoral research I said: The significance of the board and executive having diverse views as to the board's effectiveness is clear: these separate, yet intrinsically linked teams, are less likely to be able to work in synergy and have trust and confidence in each other. If the executive believes the board is ineffective. The outcome for an organisation whose board and executive have significantly divergent views on the effectiveness of the board will be diminished levels of synergy, trust and confidence, leading to poorer organisational performance. This Harvard Law School article penned by Catherine Hall and Carin Robertson of the PwC Governance Insights Centre uses 2023 survey findings of Directors and C-Suite (separate) members to identify a divergence between the board view of its own effectiveness compared to how the executive view the board's effectiveness. A point they don't make, but I do, is that the greater the disparity between the board and C-Suite views on the boards' effectiveness, the higher the probability the organisation concerned will perform poorly. This article reinforces my research (2011) findings which identified the Third-Team; combined board and executive, and the development of Synergy, Trust and Confidence within and between the Third-Team members as essential to how this team then influences and affects organisational performance. Obviously identifying and understanding the disparity between the Boards view and the C-Suites (exec's) view of the boards effectivness is critical if organisations are to have the chance to perform to their true potential. Article: https://lnkd.in/gZcfAg3V #Governance #ThridTeam #Director #BehaviouralGovernance #Chairs #Boards The Chartered Governance Institute Chartered Governance Institute New Zealand Good Governance Academy Global Network of Director Institutes (GNDI) Institute of Directors in New Zealand Institute of Directors (IOD), India Australian Institute of Company Directors Singapore Institute of Directors Institute of Directors (Kenya) ISM University of Management and Economics Leeds Beckett University European Corporate Governance Institute (ECGI) International Corporate Governance Network African Corporate Governance Network Chairs Forum https://lnkd.in/gyCjSeqs

Protiviti, Broadridge and BoardProspects conducted the Global Board Governance Survey in Q4 2023. The study is designed to gain the perspectives of board members, CEOs and other C-level executives, identifying opportunities for improving boardroom performance by analyzing key differences in viewpoints between board members and the C-suite regarding the board’s effectiveness.

The rising complexity of board directorship: Board experts explain how directors can meet the demands of growing agendas. http://dlvr.it/T3bhGW #StrategyampCorporateFinanceInsights #CorporateFinance #Strategy

How can nominating/governance committees prepare for 2024? 💡 Optimize board composition for an increasingly complex and changing business environment 💡 Consider how best to oversee new and changing risks and opportunities (AI, geopolitical, etc.) relevant to business and sector 💡 Ensure robust oversight of CEO succession Learn more: https://bit.ly/3HmMKk5

In this short article for Directors & Boards Protiviti managing directors Jim DeLoach and Frank Kurre offer the Five Areas Every Board’s Agenda Should Address, along with 10 provocative questions to help directors launch boardroom discussions informed by key findings from the Global Board Governance Survey, conducted with our partners at Broadridge and BoardProspects. Any Board members or those interested in what's likely on the Board agenda, this is a very worthwhile (quick) read.