How boards can execute governance reviews to improve performance

Governance is crucial for enhancing corporate performance and maintaining stakeholder trust. To improve performance, boards must execute effective governance reviews that serve as opportunities to assess and refine the company's mission, stakeholder priorities, resources, and strategies. By transforming standard governance reviews into ongoing strategic exercises aligned with critical board work, board members and executive leadership can foster a shared vision, improve performance metrics, and enhance adaptability.

Here are some methods for conducting governance reviews:

• Define performance and governance: Boards must establish a clear understanding of corporate performance and governance, along with accurate data, to effectively assess and improve their company's performance.
• Conduct the governance review to enhance board and executive effectiveness: Implement improvements in roles, responsibilities, and qualifications to strengthen leadership and overall corporate performance.
• Expand the governance review to improve performance: The review agenda should focus on how the governance program enables appropriate oversight and execution of the company's mission, stakeholder priorities, and performance goals to drive growth and success.
• Recognize the payoff: By shifting the governance review from a mere compliance exercise to a strategic tool, boards can promote constructive stakeholder engagement and improved corporate performance.

Learn more about how to strengthen your governance and better position your organization for long-term growth. Download our paper, How boards can execute governance reviews to improve performance.