High-performing boards have to prioritize and put significant effort into governance and risk management, laser focus on the most critical issues, advising the management on the maximization of the business capital allocation and improvement of the multidimensional shareholder’s value.
The corporate board's role is to pull management out of the trees to see the forest; to clarify known unknown, to ensure there is a strong context for establishing strong governance discipline with the tactical choices when the surprises will invariably show up.
Performance monitoring: Performance-based management requires that the measurement and communication of performance is an integral part of an ongoing process and not an annual, quarterly, or monthly event. Performance is well done of current assignments and demonstrates the capacity of doing great work to achieve measurable results. However, the disconnect occurs or the performance blind spot is created when the wishful thinking at higher levels detaches from reality at lower levels. The BoD’s performance monitoring is crucial to close blind spots which perhaps further cause the management decision ineffectiveness. It helps the management understand deeper about their organization, knowing where to invest in new business capabilities or improve workforce productivity based on an information-based agenda and achieve high performance results.
In achieving the role of the performance monitor, the board needs to decide whether management is achieving expectations, and gain an in-depth understanding of what’s blocking business achievements. Performance management is not an isolated management discipline, but a holistic approach with a well set of methodologies and practices by connecting multidisciplinary management dots to tell the full story with business context, and to ensure that the business as a whole is superior to the sum of its parts. In fact, the governance and management disciplines go hand in glove, and the corporate board decides what the expectations of management are. The corporate board’s strategic oversight helps the management clarify how each part of the organization, including all of the key functions must "put it all together" to ensure that the business as a whole is superior to the sum of pieces, and accelerate business performance.
Governance modeling: Statistically, strategy execution has a very low success rate. If a strategy is not moving forward as desired, perhaps it’s because that governance fails to function smoothly. The BoD assumes the dual role of guidance and governance steering, leaving the day-to-day leadership/management processes and practices in the hands of the C-level executives, holding them accountable and supporting the management team in achieving performance outcomes. Strong governance disciplines enforce the ability to revisit and reinforce what you have put into management processes consistently before moving on to new phases.
Corporate boards leverage an effective governance model to address the concerns of the stakeholders who want to ensure that the strategy execution is aligned with intent. Governance is not about stopping the corporate vehicle, but to steer it in the right direction with the proper speed. It’s about how well an organization is being run and if set upright, it should effectively oversee the achievement of the business vision, strategy, and objectives. Governance as a multi-disciplinary approach is an enabling vehicle that provides a platform for determining sound corporate attitude, behavior and structured decision-making for improving business maturity, achieving decision-making optimization, or accountability enforcement.
Leadership coherence: The corporate board competency will directly impact business competency. Board must set an example of leadership which permeates through the entire organization. An effective and efficient board can reflect, identify and mind the gaps on their own boardroom turf, present the leadership characteristics of self-awareness, business insight, leadership capability, learning agility, identify and envision a worthy objective, and engage people to work towards that objective effectively.
What leadership focuses on is about leading with purpose and intent to achieve particular objectives. Modern corporate boards play a critical role to exemplify digital leadership and influence corporate culture. Thus, corporate board leadership needs to be visionary, empathetic, generous, conscious, passionate, and humble. Corporate board leadership coherence directly impacts on decision effectiveness and governance coherence.
High-performing boards have to prioritize and put significant effort into governance and risk management, laser focus on the most critical issues, advising the management on the maximization of the business capital allocation and improvement of the multidimensional shareholder’s value. To lead effectively, they are able to break down the bottleneck of digitalization and bridge the gap of opportunity between where they are and want to become, cascading the changes from the boardroom to the front line of the company in order to accelerate performance and improve organizational maturity.
Performance monitoring: Performance-based management requires that the measurement and communication of performance is an integral part of an ongoing process and not an annual, quarterly, or monthly event. Performance is well done of current assignments and demonstrates the capacity of doing great work to achieve measurable results. However, the disconnect occurs or the performance blind spot is created when the wishful thinking at higher levels detaches from reality at lower levels. The BoD’s performance monitoring is crucial to close blind spots which perhaps further cause the management decision ineffectiveness. It helps the management understand deeper about their organization, knowing where to invest in new business capabilities or improve workforce productivity based on an information-based agenda and achieve high performance results.
In achieving the role of the performance monitor, the board needs to decide whether management is achieving expectations, and gain an in-depth understanding of what’s blocking business achievements. Performance management is not an isolated management discipline, but a holistic approach with a well set of methodologies and practices by connecting multidisciplinary management dots to tell the full story with business context, and to ensure that the business as a whole is superior to the sum of its parts. In fact, the governance and management disciplines go hand in glove, and the corporate board decides what the expectations of management are. The corporate board’s strategic oversight helps the management clarify how each part of the organization, including all of the key functions must "put it all together" to ensure that the business as a whole is superior to the sum of pieces, and accelerate business performance.
Governance modeling: Statistically, strategy execution has a very low success rate. If a strategy is not moving forward as desired, perhaps it’s because that governance fails to function smoothly. The BoD assumes the dual role of guidance and governance steering, leaving the day-to-day leadership/management processes and practices in the hands of the C-level executives, holding them accountable and supporting the management team in achieving performance outcomes. Strong governance disciplines enforce the ability to revisit and reinforce what you have put into management processes consistently before moving on to new phases.
Corporate boards leverage an effective governance model to address the concerns of the stakeholders who want to ensure that the strategy execution is aligned with intent. Governance is not about stopping the corporate vehicle, but to steer it in the right direction with the proper speed. It’s about how well an organization is being run and if set upright, it should effectively oversee the achievement of the business vision, strategy, and objectives. Governance as a multi-disciplinary approach is an enabling vehicle that provides a platform for determining sound corporate attitude, behavior and structured decision-making for improving business maturity, achieving decision-making optimization, or accountability enforcement.
What leadership focuses on is about leading with purpose and intent to achieve particular objectives. Modern corporate boards play a critical role to exemplify digital leadership and influence corporate culture. Thus, corporate board leadership needs to be visionary, empathetic, generous, conscious, passionate, and humble. Corporate board leadership coherence directly impacts on decision effectiveness and governance coherence.
High-performing boards have to prioritize and put significant effort into governance and risk management, laser focus on the most critical issues, advising the management on the maximization of the business capital allocation and improvement of the multidimensional shareholder’s value. To lead effectively, they are able to break down the bottleneck of digitalization and bridge the gap of opportunity between where they are and want to become, cascading the changes from the boardroom to the front line of the company in order to accelerate performance and improve organizational maturity.
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