Chief among these challenges is the complexity of ensuring all boards are performing effectively and at a consistent level across the group. In this article, we provide more context about board reviews and how multi-board entities can overcome these challenges through the use of technology.
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The challenge of board reviews for multi-board entities
A board review is a vital process that holds all directors accountable for their performance and drives continuous improvement for an organisation. No matter the size of the organisation, a board review should be conducted on an annual basis. However, there are challenges to this for multi-board entities, which are outlined below.
Time constraints
One of the foremost challenges in multi-board entities is the time-consuming nature of conducting reviews across numerous companies. Directors, especially those who serve on multiple boards within the same entity, may find themselves stretched thin, grappling with conflicting schedules and priorities. If deadlines are pushed out, there is the very real risk that key feedback is not delivered in a timely manner.
Inconsistent methodologies
If a multi-board entity employs different review methodologies across its different companies, this can impede meaningful comparisons and benchmarking. Without a standardised approach, assessing the performance of each board relative to each other is challenging.
Poor data management
Compounding these challenges is the difficulty in aggregating and analysing data from disparate sources, hindering the ability to track performance trends over time. Without access to consistent data across the organisation, identifying areas for improvement and measuring progress becomes an arduous task, limiting the efficacy of board reviews.
Privacy concerns
Privacy concerns are paramount in any board review process, particularly in multi-board entities where sensitive information may be shared across various companies within the organisation. Confidentiality breaches may occur due to inadvertent sharing of information via unsecure channels or misplacement of written materials. Such breaches can compromise the integrity of the review process, adding another layer of complexity to the process.
Leveraging board review technology for consistency and insight
At BoardOutlook, we offer purpose-built board evaluation software that addresses the challenges inherent in board reviews for multi-board entities. These are outlined below.
Consistency
By leveraging board performance software such as BoardOutlook, multi-board entities can streamline the review process and ensure consistency across all boards. Each director can have the same experience and with standardised reporting it is much easier to compare results across boards.
Group level reporting
The benefit of a consistent approach across all boards within the organisation means that each board can clearly see where it sits relative to the others within the organisation. This supports growth and a continuous improvement mindset across the entire multi-board entity.
Director development
By coordinating board reviews through technology, multi-board entities will find it easier to build out development and education programs for directors across all companies. This makes the process far more streamlined for the organisation and increases the likelihood of board performance increasing across all boards.
Further to this, the boards performing at the lower end of the organisation may be able to learn from the higher performing boards, either through internal development programs or simply by understanding their dynamics through the board review results.
Benchmarking and longitudinal data
BoardOutlook allows multi-board entities to move to a longitudinal process of ongoing performance improvement across all boards within the organisation. Not only can you easily track change and improvement over time, you can also take advantage of benchmarking reports to see where the organisation sits relative to others within a similar industry or with a similar organisational structure.
Fast deployment and turnaround
BoardOutlook has no integrations, which allows rapid deployment (an organisation can be live within hours). Automated reminders, report generation and workflow management mean board review processes are completed within weeks, not months.
Confidentiality and security
Traditional board review processes introduce substantial confidentiality risks through data collection and compilation of results. BoardOutlook eliminates the risks of uncontrolled and encrypted digital and physical artefacts that increase the risk of inadvertent data breach.
Simplify the board review process with technology
It’s no secret that multi-board entities are complex and face unique challenges when it comes to the board review process. However, by embracing tailored technology solutions such as the BoardOutlook platform, organisations can overcome these challenges and unlock new avenues for enhancing board effectiveness.
From standardising processes and facilitating comparative analysis to enabling benchmarking and longitudinal analysis, board performance technology offers a myriad of benefits for navigating the complexities of board reviews for multi-board entities. In an era defined by rapid digital transformation, embracing technological innovation is not merely a choice but a strategic imperative for companies seeking to elevate their board performance to new heights.