Key Steps for Developing a Board Succession Plan

If there are changes to the board structure, you need to be prepared for them in advance. Most often, such changes occur because someone on the board is leaving their position. Not only may this lead to staff losses which need to be dealt with quickly, but it may also have a negative impact on the functioning of the entire company.

In order not to get lost in a crisis and not to panic, a so-called board succession plan should be prepared in advance. It is a strategic document which contains instructions on what to do if a member of the board leaves. While it may seem unimportant at first glance, it actually helps to maintain the company in a time of internal crisis and to deal with the problem of replacing the board as quickly as possible.

 

How to develop a board succession plan: a step-by-step guide

To create an effective succession plan, you need to go through several steps in its development. At first glance, creating a succession plan may seem like a daunting task, but it can actually be done in a few steps.

 

Integrate the development of a succession plan with overall company planning

The success of any company is not just dependent on sound business decisions. Crisis readiness is just as important a measure of success. One of these is the departure of board members. Company planning cannot do without setting up guidelines for such situations. Select qualified professionals to draft a succession plan and incorporate it into the company’s overall work plan.

 

Do a preliminary review of job openings

Every company conducts an annual review of employee performance. Board performance is no exception to the general rule. It is recommended that you do a preliminary review of vacancies that are theoretically likely to become available in the near future, and make a list of the key requirements for applicants. In this way you can reduce the time it takes to find the right candidate.

 

Do a thorough screening process

Even if the human resources department already has a suitable candidate for the vacant board seat, don’t rush into an appointment. It is better to look for more candidates, and choose the best one from among them. In doing so, you need to match the requirements of the vacancy with the existing skills and experience of each of the candidates. By comparing their performance against key requirements, you can find the perfect candidate for the benefit of the entire company.

 

Incorporate the onboarding process into your succession plan

The board succession plan should have a timeline for implementation. It should include an adaptation period for new board members. This will help smoothly integrate the changes into the company’s operations, and it will give new employees a chance to get used to their new positions and responsibilities without undue stress.

 

Remember, no task is too big or too small. The key steps for developing a board succession plan are needed first and foremost to create an effective and practical leadership team, dealing with crisis situations rather than eliminating undesirable employees. However, it is recommended that such a plan be made available for discussion and review so that changes can be made in time to create a leadership that is ideal for each company.

Corporate Governance Educational Process

The science of corporate governance is the best solution for finding the most effective way to run a company. Its basics can be useful for heads of large corporations as well as executives of smaller companies. To get the most out of this science, you need to learn more about the corporate governance educational process, which we suggest you do in this article.

 

Why is the educational process in management so important?

In order to get the governance process right, you need to learn the basics of corporate governance. Strange as it may sound, the only way to acquire basic knowledge is through education. However, it is just as important to back up this basic knowledge with practical experience.

Basic education has a number of advantages, including:

  1. The educational process contributes to management performance. Finding the best solutions for organising the management process is not possible without knowing the basics. Moreover, learning the basics of corporate governance is not just about learning some useless theoretical framework – it is also an opportunity to learn from your colleagues or competitors to develop your own unique governance model.
  2. A theoretical basis improves the quality of decision-making. Organising your management process around the knowledge and experience of other companies helps to develop decision-making methods that are ideally suited to your company. It also helps to build a sense of collective responsibility among management structures, which facilitates the implementation of multi-company decision-making.
  3. Knowledge contributes to finding the best solutions for everyone. Of course, finding the ideal management solution that fits all sides of the management process is a difficult task. But a complex approach, taking into account global experience and knowledge of other companies, will help find the most acceptable way out of any situation.

Therefore, the opportunities offered by education in corporate governance should not be ignored. Here we are talking not only about university courses, but also more accessible forms of education – courses, training webinars, theoretical studies on relevant topics.

 

Principles of the educational process in corporate governance

The organisation of training to improve corporate governance needs to be based on principles which ensure their effectiveness. These include:

  • transparency – governing structures should have a clear understanding of the content of educational courses, their significance to the company, and of course, their cost;
  • variability – it is not necessary to focus on any single aspect of corporate education, but it is better to choose a variety of educational materials that are comprehensive in nature;
  • accountability – the organisation of the educational process in corporate management is as much an aspect of the organisation of the company’s work as the others, so it is necessary to monitor their implementation and result, as well as to draw up reports.

Using the basic principles of educational process organisation in corporate management will help to establish training in the most effective way.

 

What training programmes should be considered?

There are quite a few educational programmes available for improving corporate governance. The choice of a particular programme depends on the needs of your company and its further development goals. Popular with companies are training programmes on how to set up and work with various committees, such as audit or compensation committees, how to improve management performance, introducing diversity into management structures, and many more.

Main advantages of using board portal software

No one would dispute the fact that digital technology has greatly simplified our everyday lives. It has become just as important to the business world. Technology has not only made the management process more open and efficient, but at the same time it has created new challenges for management structures. One of these important challenges has been the use of software to organise the work of the board of directors. What are the benefits and what are the risks associated with using such platforms, we tell you next.

 

Benefits of using Board Portal software

Today the market for digital technologies offers a wide range of software for organizing corporate governance. Among them is the Board Portal. This platform offers many turnkey solutions for companies of all sizes.

Compared to other similar web-based products, Board Portal has many advantages. The main advantages of using board portal software are:

  1. Streamlined board management. Using the tools offered by the web-based platform, you can significantly reduce the time and cost involved in preparing and running board meetings. All necessary materials are uploaded to the digital cloud, allowing for quick access when needed.
  2. Platform acceleration. Integration with enterprise systems speeds up the latter, reducing the time required to complete key transactions and keeping all business records up to date with current digital security parameters.
  3. User control during online meetings. In order to be able to view and use documents during board meetings, multi-step authentication is required. Not only does it help protect documents from possible leakage or unauthorised use, but it also keeps a history of all users’ actions. If any document is lost or damaged, it is always possible to find out who has done what with it.
  4. Increase the direct involvement of board members in the work of the board. It is not always feasible to bring all executive team members together to solve important issues in the life of the company. The Board Portal provides a quorum for board meetings without the need for a board member to be physically present in the office.
  5. Ensure a high level of security. Cybersecurity is a key benefit of Board Portal. Software tools help track logged user activity, detecting access from intruders or other sensitive document leakage issues within seconds.
  6. More options for corporate document storage. Because the Board Portal integrates with cloud services, it provides ample scope for storing large volumes of information. You no longer need to use different servers or other types of document storage. It is enough to have one common space where the information needed by the board of directors or other business units can be stored.

Additionally, the popular Board Portal products are capable of working across multiple user devices and sync perfectly with your corporate workflow systems. The easy-to-use and intuitive functionality requires no special knowledge or skills – just refer to the instructions provided by the providers. There is also no need to worry about updating the software – practically all systems do it in an autonomous mode without reminders and involvement of the third parties.