Interesting read about what makes some Boards more effective than others. There is direct relationship between the impact the Board has and the breadth of issues the Directors tackle and the time they dedicate to addressing each of them.
Directors who report having a low to moderate impact said that their Boards undertake “the basics” of ensuring compliance, reviewing financials, and assessing portfolio diversification. Directors reporting that their Boards have a higher impact undertake these activities as well, but add several other practices in every function, such as looking forward at emerging technology trends and debating alternative strategies to respond to evolving market conditions. Time and commitment also matter – Directors on “high impact” Boards worked about 40 days a year, while those who reported lower impact averaged only 19. Higher- and lower-impact Directors spend the same amount of time on compliance-related activities: about four days a year. By contrast, higher-impact Board members invest an extra eight workdays a year on strategy. They also spend about three extra workdays on: performance management, M&A, organizational health, and risk management.