Boards operate with different structures and priorities, but the most effective ones share a common focus: a strong People agenda. While fiduciary duty, risk management, and regulatory compliance are essential, future-proofing a company requires more. It demands a deliberate approach to culture, values, and leadership—integrated seamlessly with strategy—to drive long-term success.
In this article, we explore the key pillars of the People agenda and what sets high-performing boards apart.
1. CEO and Executive Succession
In less effective boards: CEO succession is often addressed only when an incumbent’s term nears its end or when an unexpected leadership change arises.
What sets high-performing boards apart: Succession planning is an ongoing priority. The board continuously maps internal and external talent, maintaining robust contingency plans for key roles. Members actively leverage their networks to attract top leaders.
Delve deeper: CEO Succession Planning for Tomorrow’s Success
2. Executive Assessment and Development
In less effective boards: CEO performance reviews are conducted annually, with formal feedback given at set intervals.
What sets high-performing boards apart: Board members cultivate close relationships with top executives, providing ongoing feedback and mentorship. They also facilitate valuable external connections to support leaders’ continuous growth—critical in today’s complex leadership environment.
Delve deeper: Expanding the Leadership Container: Increasing CEOs' Capacity for Success
3. Values and Culture
In less effective boards: The board defines company values and culture but primarily acts as a guardian rather than a champion.
What sets high-performing boards apart: Board members actively promote company culture, integrating core values into decision-making and leading by example—even fostering a high-performance culture within the board itself.
Delve deeper: What Makes a Great Board? Boardroom Insights
4. Compensation and Incentives
In less effective boards: The Compensation Committee sets pay and benefits policies, often focusing primarily on the CEO’s package.
What sets high-performing boards apart: Compensation and incentive strategies are proactively questioned and refined to ensure they drive sustainable talent retention and motivation at all levels.
Delve deeper: Importance of People & Remuneration
5. Board Member Recruitment and Onboarding
In less effective boards: New members are recruited through referrals and networks, often without a deep analysis of skills and alignment with company strategy—potentially missing opportunities for fresh perspectives.
What sets high-performing boards apart: Board succession is a continuous discussion, prioritizing diverse, complementary skill sets that align with both present needs and future ambitions. Onboarding is structured, engaging peers and leadership in the process.
Delve deeper: Strategic Board Succession Planning Comes of Age
6. Board Composition and Expertise
In less effective boards: Membership has historically leaned toward former CEOs and CFOs, resulting in a strong financial bias and limited functional variety.
What sets high-performing boards apart: The most effective boards are multifaceted, bringing together expertise in technology, climate change, human resources, finance, and beyond—ensuring they are well-positioned for the challenges ahead.
Delve deeper: Building Board Resilience in the Consumer Industry
7. People Committee
In less effective boards: Board-executive relationships are often transactional and reactive, limiting opportunities for meaningful impact.
What sets high-performing boards apart: The People Committee takes on a leadership role, actively shaping strategic talent initiatives and fostering continuous dialogue between the board and executive team.
Delve deeper: How a People-First Culture Has Paid Off for Marriott International
8. Board Member Assessment and Development
In less effective boards: Board members rely on past experiences for development, with limited feedback and learning opportunities.
What sets high-performing boards apart: Continuous development is a priority. Regular feedback discussions between the Chair and members, tailored learning programs, and structured evaluations help ensure adaptability to emerging challenges.
Delve deeper: Board Stewardship for a Resilient Business
Prioritizing the People Agenda Is Essential
Placing people at the center of corporate discussions is not just common sense—it is a strategic necessity. Companies that invest in talent development and embed inclusion into their governance structures will be better positioned to navigate future challenges. Boards that make this a priority are laying the foundation for the long-term success and sustainability of their organizations.
