Frankfurt
Board Effectiveness: Building a High-Performing Board
The challenge
RefineValue was engaged by a listed industrial and technology company to assist with succession planning for the Chairman. The company was undergoing a critical transformation, and while the board was working effectively with the management team, the situation required more than a process-oriented approach. The core issue was a lack of board focus on the company’s strategic and operational challenges, and there was minimal collaboration with the management team. Additionally, the company was under increasing pressure from investors to take more aggressive actions than originally planned.
Recognizing the need for the board to redefine its purpose and significantly improve its effectiveness, the Chairman turned to us for guidance. Our mandate was to redefine the board’s strategic direction, refine its culture and structure, strengthen its relationship with management, and align its composition with the company’s forward-looking strategy.
Our impact
In close partnership with the Chairman, we designed and executed a four-year program to significantly improve the board’s effectiveness. The foundation of our approach was a rigorous and comprehensive evaluation of the board. Through a combination of online surveys, methodologically sound assessments, and in-depth personal interviews with all board members and the Executive Committee, we gained unparalleled insights into the dynamics of the board. These insights were instrumental in optimizing the board’s strategy, culture, composition, structures, and processes.
Our evaluation revealed a foundation of respect and cooperation within the board, providing a solid basis for improvement. However, we also identified areas for enhancement, including aligning strategic decisions more closely with the company’s stage of development, improving leadership and communication within committees, and fostering a culture of debate to facilitate more robust discussions on key decisions. To address these issues, we developed an interactive training program that brought together the board and the executive team to collaboratively address current and future challenges.
To increase the diversity of perspectives and experience, we supported the board in implementing a comprehensive succession program. This included establishing a more structured approach to succession planning for both the board and the CEO, introducing an annual 360-degree assessment process, and developing individual development plans for each board member.
The results
As a result of the four-year board effectiveness program, the board is now well-positioned for the future and has played a key role in the company’s successful transformation from an industrial company to a technology leader. With a clearer understanding of individual roles, improved team dynamics, and a unified strategic direction, the board achieved top marks in its annual evaluation. We successfully built a high-performing board that is well-equipped to navigate future challenges and drive sustained success. The succession solutions we implemented were well received by investors, the board, and the public, and were praised by both executive management and board members for significantly improving the board’s effectiveness.
