Board Impact

Understanding and measuring the value of a board

It is reasonable to assume that good organisational performance is the result of a board doing its job well. However, this seemingly obvious statement is not as simple as it first might appear.

Boards often assume that they are effective if the organisation that they govern is successful. However, this causal link does not always follow. Organisational success might be the product of favourable market or funding conditions, a high performing and dominant CEO and executive, and/or an established brand or reputation that attracts a highly motivated and talented workforce. Boards should not, therefore, assume that just because their organisation is successful, that there are no other contributing factors to this success.The reverse can also be true. That is, we cannot assume that poor organisational performance is necessarily the result of an ineffective board.

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