As the strategic hubs of organizations, it is the primary task of Boards to ensure the enduring vitality of the companies they drive. Yet their own fitness is just as critical. Today’s Boards are running strategic and operational marathons, increasingly in the spotlight and challenged by share- and stakeholder groups who have never been more informed, demanding, or vocal.
High-functioning Boards are successfully running the extra mile. They are representative and diverse, not only in terms of demographic statistics but also in terms of characteristics (diversity of 'thought').
Their Independent Directors are integrated in a way that has risen beyond statutory norms to new levels of advisory excellence. They are not only fit for today but justifiably confident in their succession for tomorrow. Their Nominations Committees have widened their scope: from preserving a traditional inner circle of familiar candidates, to acting as an expert and objective human capital interface. One that also has a firm grip on technology and innovation.
Yet the reality for most Boards is different.
As organizations reconfigure for growth and globalization, many are facing serious governance questions for the first time. Their task is complicated by regulatory developments whose pace and form differs by geography, ownership type, listed status and, in some countries, sector. Further dilemmas surround the transfer of leadership from family or founding members to external professionals, or structural tensions pitching centralization versus decentralization.
Yet, despite unevenness, the underlying trend in global governance legislation is ticking up towards new and better standards, as national regulatory bodies look to the global picture for learning and synchronicity.
As such, the transformative opportunities for Boards have never been greater. All the more so, if they benefit from robust external advisor-ship.
Looking at the Saudi Arabian market specifically, currently all publicly listed organizations are required to conduct annual board effectiveness and board member effectives reviews in order to remain in compliance with the regulations of the Capital Market Authority.
Amrop Saudi Arabia is uniquely qualified to help organization within the country meet this requirement given our local understanding and expertise in combination with our international network and expertise as illustrated below.
Amrop works to assure the design and implementation of diverse, forward-looking and connected boards. We act as Trusted Advisor to the Executive, Supervisory and Advisory Boards of dynamic organizations all over the world, across a spectrum of industries.
Amrop's global Board Assessment Services Practice works along three interconnected lines:
- Appointments (Chairs, Independent Directors, Advisory Boards, Committees)
- Board Evaluation
- Uncovers gaps in the skills, experience, demographic and cognitive diversity of the current Board
- Identifies management strengths to build upon
- Examines requirements for new demographic profiles, specialist and technical skillsets
- Integrates fast-evolving governance requirements and organizational strategy
- Identifies, assesses, and presents Leaders For What’s Next – board members who can flex to evolving strategic and operating environments across borders.
- Key questions - particularly in the search for Independent Directors, these are often an afterthought:
- Can s/he anticipate the scale and complexity of strategic and operational risks?
- Act as a respected catalyst, contributing in a fresh and relevant way to Board discussions?
- Constructively challenge traditions, assumptions or bias?
- Guides the design and implementation of the onboarding process
For organizations on a steep growth and globalization curve, Amrop helps ensure that their Board composition strikes the all-important balance between representativeness and leanness. That it does not only account for current governance frameworks, but looks forward to global governance trends.
In addition to optimizing existing installations, Amrop helps start-up organizations to set up Boards that fit their core business and aims and are compliant with governance standards.
The Amrop Global Board Assessment Services Practice
Composed of Amrop Executive Board Members and Managing Partners, Amro's Global Board Assessment Services Practice is configured to share, synthesize and replicate trends, innovations and thought leadership throughout our 55 operating markets, and act as a trusted center of excellence for our Member Firms - and thereby our clients.
Click here to meet the Core Team of the Global Board Assessment Services Practice.