One of the leading trends in the development of the system of board governance in the world is the tendency to create a system that does not oppose “managers” and “controlled”, but blurs the line between them, uniting them in a common goal – to increase the efficiency of decisions via board portal software.
Board Management Tool as an Integral Part of Mastering Board Governance
The board portal software considers attracting the population to the allocation of priority areas for spending funds from local budgets, to the implementation of the most rational projects, and then to control by citizens and public associations. The advantage of using the initiative budgeting mechanism is the creation of an expanded system of users of information about the budget process in an accessible and understandable format for citizens. The effectiveness of this mechanism is twofold: the population actively participates in the development of the infrastructure of municipalities, and local governments optimize the management of public finances.
Numerous boards of directors already follow the principle of group reflection using the board management tool. However, this usually takes the form of an annual assessment — a legal requirement in many countries — and rarely results in efficiency gains. And an agile approach would be helpful here. For example, it would be much more practical and efficient to conduct an informal assessment at the end of each meeting. The questions should not be difficult: “What happened today? What didn’t work out? What can we improve next time?
When considering the general principles set out in the board portal software, national authorities need to take into account the general situation in their jurisdictions, including the supervisory approach and regulatory framework, as well as the risks present in the country, again taking into account the global spread of virtual asset activities. These challenges have had a significant impact on the business of companies and have posed numerous current and strategic questions for Russian directors, the answer to which will allow the companies’ businesses to adapt to the crisis conditions. Changes are also taking place in the boards of directors themselves.
Performance indicators (metrics) are a challenging task for mastering board governance. In many cases, metrics are no longer relevant in calendar year-end companies. Committees with a later fiscal year face the opposite dilemma: trying to set targets during a period of significant uncertainty while addressing the dilution and contingency issues of potentially artificially low stock prices.
The Main Advantages of Mastering Board Governance with Board Portal Software
- The board governance should contribute to the settlement of corporate conflicts, all shareholders should be given the opportunity to receive effective protection in case of violation of their rights.
- The board governance with board portal software should play a key role in taking measures to prevent and resolve conflicts with board portal software (as well as minimize its consequences) between the body of the company and its shareholder, as well as between shareholders, if such a conflict affects the interests of the company, use out-of-court dispute resolution procedures, including mediation.
- A special role in the prevention of corporate conflicts should be played by independent directors of the company, who must first assess the actions and decisions of the company that may lead to a corporate conflict, and in the event of a negative conclusion of which the corresponding actions are not recommended to be taken.