The development of a competency-based board model is essential for ensuring that a board of directors has the necessary skills, knowledge, and experience to effectively govern an organization. Competency-based boards focus on recruiting, selecting, and developing board members based on the specific competencies required for the organization’s strategic goals and challenges. Here’s how to develop a competency-based board model:
Assess Organizational Needs: Begin by conducting a comprehensive assessment of the organization’s strategic objectives, goals, and challenges. Identify the key competencies and skills required on the board to support the organization’s mission and vision.
Define Board Competencies: Clearly define the competencies and skills needed on the board. These may include financial acumen, industry expertise, legal knowledge, strategic planning, governance experience, and leadership skills. Determine the level of proficiency required for each competency.
Competency Framework: Create a competency framework that outlines the required competencies and their descriptions. This framework serves as a reference guide for board recruitment, assessment, and development.
Board Composition Analysis: Analyze the current composition of the board to identify gaps in competencies. This will help you understand where the board may need to strengthen its expertise.
Recruitment and Selection: Develop recruitment and selection processes that focus on identifying candidates with the required competencies. Use the competency framework as a basis for board member job descriptions and as a guide for interviews and candidate assessments.
Orientation and Onboarding: Implement an orientation and onboarding process for new board members to familiarize them with the organization, its operations, and governance processes.
Ensure that new members receive training and support to develop competencies as needed.
Board Development Programs: Establish ongoing board development programs to enhance the competencies of existing board members. These programs can include training, workshops, mentoring, and exposure to relevant industry or market trends.
Performance Evaluation: Implement a board performance evaluation process that assesses how well board members are meeting the competency requirements. Provide constructive feedback to help members improve and develop the necessary skills.
Succession Planning: Develop a succession plan that considers the organization’s future needs and ensures a pipeline of potential board members with the required competencies.
Diversity and Inclusion: While focusing on competencies, also consider diversity and inclusion. Aim to have a board that reflects a diverse range of backgrounds and perspectives to improve decision-making.
Monitoring and Adaptation: Continuously monitor the board’s effectiveness and ensure that it aligns with the organization’s evolving needs. Make adjustments to the competency framework and recruitment processes as necessary.
Communication and Transparency: Communicate the competency-based board model to stakeholders, including employees, shareholders, and the public. Transparency helps build trust in the board’s governance. By developing and maintaining a competency-based board model, organizations can enhance their governance practices, make more informed decisions, and better position themselves for long-term success. This model ensures that the board is equipped to address current challenges and adapt to future changes.
Service coverage
The variety, breadth, and depth of the projects where Arcus can be a resource are made unique by each client’s specific needs. By providing a very small sample of projects we’ve completed, we can help you understand how and when to use our services. Visit the links below to find out more about a specific problem or opportunity you would like to address.
Below is a sample of the range of services that Arcus has provided to clients.
- A survey of 2,350 consumers and 1,320 business leaders for feedback on sustainability trends
- Architecting a multi-year change strategy for a Fortune 500 company
- Mentoring a CEO on organizational change
- Excellence transformation of a leading B2B services company
- Creating a new sales deployment model for a healthcare company
- Developing a position evaluation and compensation model for a professional medical association
- Improving services to customer segments by deepening their understanding of customer attitudes
“Arcus manages to consistently deliver tangible results on market research and strategy projects. They combine deep business expertise, powerful research capabilities, and innovative thinking to deliver substantial value.”
– Vice President, Nikon