The Board vs Executive View of Board Effectiveness and its Influence on Organisational Performance

Mowbray, Denis
January 2014
Proceedings of the European Conference on Management, Leadership;2014, p183
Conference Proceeding
The robustness of the board review process is proportional to the value a board will gain from conducting the reviews. However, it is rare for a board to either seek or accept as valid, the views of those outside of the board room, particularly, the executive of the organisation. We posit that board effectiveness is a function of two attributes, its internal functionality and attributes, and how well it works with the executive to fulfil its control and service roles. Combining these notions, we reviewed the extent (narrow or wide) of disparity between directors' and executives' views of their board's effectiveness. We then compared identified attributes and the level of disparity (narrow or wide) in high performing organisations against those of non-high performing organisations in our sample to identify what if any differences existed. While some disparity between the board and executive ratings of board's effectiveness were expected, the identified level of disparity between ratings was significantly narrower in high-performing organisations when compared against the ratings in non-high performing organisations. We argue that the differences in board attributes and the level of disparity in the effectiveness ratings are predicators of future organisational performance.


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