Board Effectiveness
Good organizations not only focus on delivering short term and annual results but at the same time also focus on building Organizational capacity and effectiveness to also deliver long term value to the shareholders. Their focus is to deliver on their short term commitments at the same time enhancing and sustaining organization capacity to deliver long term stakeholder value.
Very often many organizations focus on delivering short term commitments at the cost of diminishing organization capacity, which impacts their ability to sustain results and impacts their ability to provide long term value to stakeholders. Too often the board discussions and agendas are too focussed on discussions on the quarterly and yearly financial results ( which is the effect part-lagging indicators after the results have happened –Reactive mode ) and not on how to build the organization capacity , robust processes, systems and structures, which will provide sustainable results both short term and long term ( which also addresses the leading indicators –the cause part-Proactively ) .
Organization capacity building and effectiveness in leading organizations consist of three critical processes effectively linked together, requiring a strong governance, and oversight by the CEO and the board namely
a) Strategy Process:
Where the company is presently? (Calibrate), where it needs to be in the next 3 to 5 years?(The strategic intent) and how to get there? (Strategic initiatives and actions), given the present and future business environment and fast changing global competitive, technology and regulatory landscape, and closely linking the same to the Operations and People Process.
b) Operations Process:
Linking the strategy process to yearly plans and what is required in driving operational and execution excellence on a sustainable basis, to deliver on the company’s yearly plans, and short and long term strategic initiatives, at the same time enhancing its competitive advantage on a continuous basis, and closely linking the same to the Strategy and People Process.
c) People Process:
Building a strong leadership pipeline, bench strength, succession planning, talent management, enhancing people capabilities, and ensuring having the right people in the right role and an effective organization structure and performance management system, to deliver on both short term and long term objectives of the organization, closely linked with the Strategy and the Operations Process.
In addition to the effectiveness of the above three core processes and their proper linkages, good companies also have a strong Enterprise Risk Management (ERM) and oversight ensuring that all present and emerging risks in each of the above processes are identified proactively, their level of impact and criticality on the organization are understood, and actions are put in place to address the same proactively.
They ensure that the necessary risk management are embedded in each of their processes, and the necessary oversight and management are done at each levels,with the final responsibility of oversight and governance of the ERM and the critical risks, which at time can have significant and catastrophic impact on the company (as what happened during the recent financial meltdown and economic downturn) are carefully and diligently managed at the board level.
As part of its ‘Board Practice and CEO Advisory Services’, Cornerstone International closely works with the CEO and the board to help and support:
For more details Please contact Mr. Vijay Karkare, Managing Director - Cornerstone India at: This email address is being protected from spambots. You need JavaScript enabled to view it.
Very often many organizations focus on delivering short term commitments at the cost of diminishing organization capacity, which impacts their ability to sustain results and impacts their ability to provide long term value to stakeholders. Too often the board discussions and agendas are too focussed on discussions on the quarterly and yearly financial results ( which is the effect part-lagging indicators after the results have happened –Reactive mode ) and not on how to build the organization capacity , robust processes, systems and structures, which will provide sustainable results both short term and long term ( which also addresses the leading indicators –the cause part-Proactively ) .
Organization capacity building and effectiveness in leading organizations consist of three critical processes effectively linked together, requiring a strong governance, and oversight by the CEO and the board namely
a) Strategy Process:
Where the company is presently? (Calibrate), where it needs to be in the next 3 to 5 years?(The strategic intent) and how to get there? (Strategic initiatives and actions), given the present and future business environment and fast changing global competitive, technology and regulatory landscape, and closely linking the same to the Operations and People Process.
b) Operations Process:
Linking the strategy process to yearly plans and what is required in driving operational and execution excellence on a sustainable basis, to deliver on the company’s yearly plans, and short and long term strategic initiatives, at the same time enhancing its competitive advantage on a continuous basis, and closely linking the same to the Strategy and People Process.
c) People Process:
Building a strong leadership pipeline, bench strength, succession planning, talent management, enhancing people capabilities, and ensuring having the right people in the right role and an effective organization structure and performance management system, to deliver on both short term and long term objectives of the organization, closely linked with the Strategy and the Operations Process.
In addition to the effectiveness of the above three core processes and their proper linkages, good companies also have a strong Enterprise Risk Management (ERM) and oversight ensuring that all present and emerging risks in each of the above processes are identified proactively, their level of impact and criticality on the organization are understood, and actions are put in place to address the same proactively.
They ensure that the necessary risk management are embedded in each of their processes, and the necessary oversight and management are done at each levels,with the final responsibility of oversight and governance of the ERM and the critical risks, which at time can have significant and catastrophic impact on the company (as what happened during the recent financial meltdown and economic downturn) are carefully and diligently managed at the board level.
As part of its ‘Board Practice and CEO Advisory Services’, Cornerstone International closely works with the CEO and the board to help and support:
- Review and calibrating the status of the existing processes Strategy, Operations and People, Enterprise Risk Management, linkages and their effectiveness in the organization
- Gap analysis, developing and enhancing the effectiveness of these three critical processes, their proper linkages and Enterprise Risk management.
- Governance and oversight by the CEO and the Board, of these three critical processes, their effectiveness, and Enterprise Risk Management.
- Organization ‘Cultural and Change Management’ to ensure acceptance to drive the effectiveness and sustainability of the above processes and linkages throughout the organization.
For more details Please contact Mr. Vijay Karkare, Managing Director - Cornerstone India at: This email address is being protected from spambots. You need JavaScript enabled to view it.