2016 Global Boardroom Insights: Building a Great Board
Aligning boardroom talent with the company’s strategy is a key driver of many boards’ increasing focus on board composition and succession planning today. Indeed, talent in the boardroom is also front and center for investors, regulators, and the media.
To better understand the tools and approaches that directors are using to achieve the right mix of skills, backgrounds, experiences, and perspectives in the boardroom – what works, what doesn’t, and what might get in the way, KPMG’s Audit Committee Institute surveyed more than 2,300 directors and senior executives in 46 countries around the world, including Nigeria.
The survey identifies some of the key challenges or barriers to building high-performing boards, as well as steps being taken by boards to overcome these hurdles and position themselves as strategic assets for their companies. The results show that many boards are re-assessing how they approach board composition from start to finish – from recruiting and onboarding to board evaluation and succession.
Some key areas of improvement highlighted for Boards in Nigeria include the following:
- High performing boards strive to achieve greater diversity, with a view to aligning their mix and competencies with their corporate strategy.
- Board performance in Nigeria could be significantly enhanced through the appointment of directors with the right skill set, healthy dynamics and robust board and individual director evaluations.
- Despite wide recognition of the importance of succession planning, only 33 percent of respondents in Nigeria reported little or no discussion about board succession.
- Boards often under-utilise effective mechanisms that help to refresh and optimize their composition. These mechanisms include evaluation and succession planning.
- High-performing boards require a strategic, integrated and proactive approach to succession planning, composition and diversity.
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