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The Value-Creating Board

June 5, 2016
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Warrick Long

Value creating boardsMcKinsey & Company released earlier this year their latest report into what is a value-creating board. The full report and commentary can be found here, but following is a selection of quotes and highlights and challenges for your board.

Striving Boards:

  • Rate particularly well at strategy and performance management, and want to spend more time each year on strategy
  • An exceptionally strong culture of trust and respect, and board members and the management team constructively challenge each other
  • The chair runs the meeting well, seeking feedback after meetings
  • Spend on average 41 days per year on board duties

Complacent Boards:

  • Only 9 percent of directors rate their boards as effective at ensuring the company has a viable CEO successor
  • They struggle to embrace feedback and rarely engage in any form of evaluations
  • Spend on average 28 days per year on board duties

Ineffective Boards:

  • Few report a culture of trust and respect in the boardroom
  • Few directors seek out any information on their own
  • About 1 percent say they received sufficient director induction training
  • Spend on average 32 days per year on board duties

What type of board do you have? Is it time to review how you function and aim to become a striving board? The Avondale Business School can assist your board to become a high performing board – find out how by contacting Warrick Long at the Avondale Business School.

E: [email protected]

P: 02 4980 2168

About the author: Dr Warrick Long is an experienced chief financial officer, company secretary and company director, having worked for more than 35 years in the not-for-profit sector. From 2013 to 2024, he was part of the Avondale Business School (ABS) lecturing as a leadership and governance specialist and coordinating the Master of Business Administration and a leadership and governance specialist. Since late 2024 Dr Long has been serving as the Chief Financial and Operations Officer for Avondale University and undertaking some casual lecturing in the ABS. LinkedIn

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