IMD-OWP22-PostEvent-Report-V11[8]

ACTION POINTS

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Learn about governance and what being a non-executive means.

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Check out best governance practices, based on constructive dissent.

Figure out how your board ranks on the four pillars of board effectiveness.

RECOMMENDED READING

HIGHPERFORMANCE BOARDS: IMPROVINGAND ENERGIZING YOURGOVERNANCE Didier Cossin (Wiley, June 2020) A PRACTICAL PERSPECTIVE: THE FOUR PILLARS OF BOARD EFFECTIVENESS Didier Cossin and José Caballero (IMD Global Board Center, December 2014) AN INTEGRATED ESG INVESTMENT APPROACH Didier Cossin and Abraham Hongze Lu (IMD Global Board Center, 27 May, 2021) WHY ESG SHOULD REALLY READ GES Didier Cossin and Abraham Hongze Lu (I by IMD, March 2022)

as well as independent from management, as well as the informal information that goes beyond the formal pack. The strength of the board’s structures and processes, and the degree to which they are fit for purpose, constitute the third pillar. Finally, the quality of boardroom culture and dynamics is essential and relies on strong values, sufficient independence,

a combination of psychological safety, and tough challenges.

FOURPILLARSOF EFFECTIVE GOVERNANCE The first pillar is about the board’s composition: the skills, quality, and dedication of individual members, as well as the design and quality of the information architecture: the right balance of internal and external information, information dependent frommanagement their diversity and focus. The second pillar relies on

The fourth pillar engages as well the quality of the

relationship between board and management and chairing skills.

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