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Board talent management - Coggle Diagram
Board talent management
The broad remit for board talent management falls under the accountability of the chair, with the nomintion committee responsible for providing the board support and recommendations on any board personnel issues
The CIPD's own 2018 definition is that talent consists of those individuals who can make a difference to organisational performance, either through their immediate contribution or in the longer term by demonstrating the highest levels of potential
Talent management is The systematic attraction, identification, development, engagement/retention and deployment of those individuals with high potential who are of particular value to an organisation
The UK Governance Code states that a structured process for what we are defining as board talent management should be put in place as follows
The board should establish a nomination committee to lead the process for appointments, ensure plans are in place for orderly succession to both the board and senior management positions and oversee the development of a diverse pipeline for success
The annual report should describe the work of the nomination committe, including the process used in relation to appointments, is approach to succession planning and how both support developing a diverse pipeline
Board competencies
The Chartered Professional Accountants of Canada produced an excellent resource entitled 20 Questions Directors of Not-for-profit Organisations should Ask about Board Recruitment, Development and Assessment
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NED competencies
Dulewicz and Gay (1997) found that although the importance ratings differed by firm size and by ED and NED, some competencies were rated highly across all demographics - these were integrity, change-orientated, listening and judgement
Simon Wong (2011) suggests that great directors are all able to exhibit the following mindsets and behaviours
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SID competencies
The FRC Code states that
The board should appoint one of the independent NEDs to be the SID to provide a sounding board for the chair and serve as an intermediary for the other directors and shareholders. Led by the SID, the NEDs should meet without the chair present at least annually to appraise the chair's performance and on other occasions as necessary
Their role gains greater prominence during times of distruption, when the board is undergoing signs of stress either externally such as during a takeover bid, or internally such as when there is a dispute between the CEO and the Chair
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