Report Details How Boards Can Be Impactful During Volatile Times

Ernst & Young recently released a report on corporate board issues entitled, “How to Increase the Board’s Impact in Volatile Times” which analyzes how corporate boards view, measure, and can improve their strategic value. The study found that the pandemic necessitated “more frequent interactions and deeper engagement,” which, in turn “bolstered the CEO-board relationship and underscored the value of the board to their organizations.” The study included a survey of directors, and found that directors believe more candid conversations and a culture of trust as well as more direct time and engagement with management were the best ways to improve the board’s relationship with the CEO/management. Additionally, the study found that “the experience and perspective the board brings during a crisis is highly valuable.” Many boards focus on their value when it comes to capital allocation, succession planning, and risk management, but the authors note “there is room for the board to add value in helping the management team plan ahead” when looking at crisis prevention and preparedness. The report also highlighted the importance of “traditional board evaluations” that act to assess board effectiveness and serve as a “check on whether the board’s confidence in its performance is well founded.”

Click here to read the EY Report on increasing boards impact in volatile times.