Board effectiveness: The directors cut incorporates the views of more than 100 board chairs and directors from the top 200 ASX companies. It identifies issues affecting board performance and provides a benchmark for chairs and directors to compare themselves with their Australian peers both individually and as a collective. The directors cut also prioritises issues that boards place high on their agenda.
Views of over a hundred board chairs and directors
It is clear from the report that there is a diverse range of perspectives on the way boards should operate and an even greater diversity of practice. However what is common across all boards is the environment, trends impacting them and the issues that Australian board directors face.
The report examines in detail factors affecting the board, board performance as well as identifies key issues that will be on the agenda of boards in the next 12-24 months.
Factors affecting the board
There is no question today that boards are under more intense public scrutiny then ever before. Most of the directors’ interviewed felt that life as a director in Australia is getting harder. More than that, many feel that there are a significant number of new external influences that will have a real impact on how effectively board directors are able to do their job. The directors cut identifies these external influences and pressures on directors and examines their impact on board dynamics and effectiveness.
Organisations are becoming increasingly complex, and shareholder pressure is forcing boards to re-evaluate performance and reassess responsibilities. The directors cut examines how directors view individual and collective board performance, their views on measurement and evaluation as well as aspects on what makes a board a high performing team.
Issues on the board agenda
The directors cut also identifies key issues that Australian boards have faced in the last year as well as issues that they believe will dominate in the next 12-24 months.
Top five issues faced by boards last year:
Top five issues in the next 12-24 months: