Realizing Greater Value from Your Board of Directors
Sage Partners' Board Effectiveness Program
In light of the increasing, often daunting pressures on management and their boards—rapid change, global unrest, privacy concerns, shareholder demands, inappropriate behavior by newsworthy executives—Sage Partners has expanded our governance advisory services. Our goal: to help management and their boards to meet the challenges these pressures trigger.
Our process, the Board Effectiveness Program, is based on our finding that stepping back periodically for a deeper assessment of the board makes sense. Our process is designed to reveal how things really work then help reset the course for improving effectiveness, creating greater value for the shareholders.
Because we have been on all sides of the table as experienced board members, leaders, and C-Suite executives, we know of what we speak. In addition we are hosting a series of discussions with executives and Directors to ensure our process can meet the current agendas. Our interviews underscore the fact that the typical annual board evaluation, while current best practice, isn’t sufficient. Our process is complementary to the annual review and should be conducted periodically, every 3-5 years, to bring the Board closer to its goal of creating value.
We’ve developed a point of view that to be an effective board you should embed five key perspectives into board processes:
Adding Value is the principal driver to impact change;
Becoming a Decision Ready board;
Embracing the notion that Oversight of Opportunity as well as risk is required to achieve Value-Creating Growth;
Leveraging the experience of the board, as a collective body, to impact organizational culture; and
Approaching the execution of oversight as a constructive endeavor, rather than largely a compliance-driven task.
Our process does not replace the annual board performance reviews or surveys. These materials inform our work. We focus on value-creation as the primary driver to improve board effectiveness and create greater value.
As our work with clients continues to inform our team, we will likewise expand the range and depth of the Board Effectiveness Program.
Sage Chairman and Founder Tom Doorley contributed this Sage Advice