We often talk about good governance, meetings held on time, detailed minutes, and committees that tick every compliance box. But here’s the real question: what has the board achieved?
In a recent conversation with Taka Svosve, executive director of Institute of Global Leadership and Administration, (IGLA), we found ourselves challenging a common assumption, that a well-organised board is automatically an effective one.
The truth is, many boards look impressive on paper yet preside over organisations that are struggling to grow, losing talent, or drifting financially.
A board can have immaculate processes and flawless documentation, but if the company is sinking or stagnant, that board has failed its purpose.
Effective boards cause growth. They don’t just discuss strategy; they make it happen. They strengthen the balance sheet, improve cash flow, build brand value, and enforce performance at every level.
In short, they are not just talkers; they are drivers of measurable results.
Growth, strategic impact
The first sign of an effective board is organisational growth.
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A board’s role is to guide strategy, open new opportunities, and ensure the company remains competitive and sustainable. Growth, whether in market share, customer base, or innovation, reflects strategic foresight and governance that delivers value. A stagnant organisation is often a symptom of a board that has become too comfortable or passive.
Financial health, balance sheet
No board can be considered effective if the organisation’s balance sheet is weak and cash flow unstable.
Strong boards understand that financial resilience is the foundation of sustainability. They track liquidity, ensure prudent borrowing, monitor profitability, and make sure the company can meet its obligations without distress.
Boards that ignore the numbers soon preside over decline.
Effectiveness is measured not by how often the board meets, but by how well its decisions strengthen the financial backbone of the organisation.
Profitability, return on investment
An effective board ensures that the organisation operates efficiently and profitably. Profitability reflects sound oversight, strategic clarity, and disciplined execution. Boards should regularly review financial performance, understand cost drivers, and guide management to deliver sustainable returns.
In the end, a board that does not produce financial results is a board that has failed its mandate.
Entity’s culture, talent retention
A productive and loyal workforce is another indicator of board effectiveness. Boards that promote ethical leadership, fairness, and accountability create environments where people thrive.
High employee turnover often signals deeper governance or leadership problems. Effective boards take interest in succession planning, executive performance, and organisational morale, because strategy means little without the people to execute it.
Brand value, market trust
The boardroom’s integrity directly shapes the organisation’s reputation.
An effective board protects and enhances brand value by upholding ethical standards, transparency, and responsible decision making. Stakeholders, investors, and customers trust organisations whose boards demonstrate credibility and consistency.
Implementation, accountability
Talk without action is a sign of ineffectiveness. Boards that only deliberate but fail to ensure implementation of resolutions add little value. Effective boards enforce accountability, holding management responsible for agreed targets and monitoring progress with discipline.
A good decision only matters if it is executed and measured.
Risk management, continuity
A forward-looking board anticipates risks before they become crises.
This includes financial risks, reputational issues, and operational vulnerabilities. Boards that manage risk effectively ensure that the organisation remains stable even in turbulent environments. Their focus is not on avoiding risk, but on managing it intelligently.
Stakeholder, community value
Finally, effectiveness is about the impact an organisation makes beyond profit.
Boards that think broadly consider their social, environmental, and governance responsibilities. They build institutions that contribute positively to society while remaining financially sound.
Results define effectiveness
A board that presides over a declining company cannot claim to be effective, no matter how perfect its processes are.
Effective boards deliver results. They grow the company, strengthen its balance sheet, stabilise cash flow, retain talent, and enhance reputation. They do not simply monitor, they lead, demand accountability, and enforce performance.
Ultimately, governance effectiveness must move from checklists to outcomes.
Because in the end, the best evidence of a high-performing board is a high performing-organisation.
Chikanda is a specialist in corporate governance, strategy, leadership development, and wellness. With vast boardroom and executive experience, he leads Vineyard Funeral Assurance as managing director and serves as lead consultant at Inspire World Institute, where he champions strong governance, and organisational excellence. — 0772 721 962/ [email protected].
