At Cornerstone, high-performing boards are not just a luxury but a necessity. Engaged, strategically focused, and agile boards are the Cornerstone of successful organizations. As trusted advisors to some of the world’s most influential boards, we provide practical and unbiased advice on board performance and effectiveness.
Since 1989, we’ve partnered with clients around the globe to offer a comprehensive suite of board advisory services, including board assessments, director recruitment, and succession planning for chairpersons, directors, and CEOs. Our approach is never one-size-fits-all; it’s carefully tailored to meet your specific needs, considering the global landscape of your industry and the opportunities it presents.
Through in-depth conversations with your Board of Directors, we take the time to understand your current governance strengths, areas for improvement, and knowledge gaps. This collaborative process allows us to help you build the board to guide your company through its next growth phase. With access to the world’s most extensive network of board-ready talent across all sectors and functions, we work to assemble a diverse and dynamic team from every corner of the globe.
Our Perspective on the Role of Boards Today
In today’s fast-paced environment, robust leadership and effective governance are more crucial than ever. Boards are no longer just oversight entities; they are strategic partners who play a vital role in shaping a company’s direction, overcoming complex challenges, and ensuring long-term sustainability. They are tasked with balancing short-term needs with long-term goals, upholding the highest ethical standards, and fostering accountability. A strong board creates shareholder value and provides CEOs with the critical guidance they need.
Inclusion and Diversity
We believe embracing various experiences and backgrounds is critical to building a solid board. Diverse perspectives lead to richer discussions and innovative solutions, resulting in more informed and effective strategies.
Environmental, Social, and Governance (ESG) Focus
Today’s boards must also navigate the increasing importance of ESG factors. Strong boards ensure sustainable practices, ethical governance, and social responsibility, which drive long-term stakeholder value and ensure your business’s integrity.
What We Offer:
- Board Advisory: Our experts offer strategic guidance across critical areas, including CEO succession planning, optimizing board composition, and conducting thorough board performance reviews. We also provide deep insights into ESG matters, helping you navigate the complex landscape of sustainability challenges. Additionally, our board benchmarking services offer valuable industry best practices and peer comparisons.
- Independent Directors with Proven Expertise: Our services are designed to enhance performance, governance, and decision-making at the highest levels of your organization. We carefully select and assign independent directors committed to exemplary governance and bring fresh perspectives and experience to your boardroom. Our thorough search process and extensive network ensure that we identify the best candidates who are:
- Industry experts with a track record of success
- Leaders with diverse perspectives and skill
- Advocates of ethical governance
FAQs
- What is the role of an independent director?
An independent director provides unbiased oversight and guidance, free from company affiliations. They enhance governance and contribute valuable insights to strategic decision-making.
- How do you identify suitable candidates for board positions?
We utilize our global network, industry expertise, and rigorous assessment processes to find candidates who align with your organization’s needs and culture.
- How do you ensure the board’s alignment with global standards?
We ensure alignment by adhering to international best practices, continuously educating ourselves on governance trends and actively engaging with regulatory developments.
- What is the impact of effective board advisory on company performance?
Effective board advisory improves strategic decision-making, strengthens risk management, and fosters a culture of accountability and transparency.
- What are your fees?
Our fees are customized to the specific requirements of each engagement.
- What industries do you serve?
We serve various industries, leveraging our global reach and deep expertise.
Contact us at simon-wan@cornerstone-group.com for additional consultations
Cornerstone’s Board Assessment Process
The objective is to evaluate the board’s effectiveness, identify areas for improvement, and ensure alignment with the organization’s goals. Our step-by-step guide to get started:
1.) Define the Objectives
- Clarify Purpose:Begin by defining why you are conducting the assessment. Typical objectives include improving board performance, enhancing governance practices, addressing regulatory requirements, or preparing for succession planning.
- Set Goals:Establish specific goals for the assessment, such as identifying skill gaps, evaluating board dynamics, or assessing alignment with the company’s strategy.
2.) Engage Key Stakeholders and Involve the Board:The board’s participation is crucial in the assessment process. By explaining the benefits and how the results will be used to enhance overall effectiveness, we underscore the board’s value and integral role in the organization’s success.
3.) Identify a Lead:Appoint a lead, such as the board chair or an independent consultant, to oversee the assessment process. Their objectivity and expertise will ensure a thorough and reliable assessment.
4.) Determine the Scope
- Areas of Focus:Decide on the key areas to assess, such as board structure, meeting effectiveness, director performance, committee functions, and overall governance practices.
- Customized Approach:Tailor the assessment to your organization’s unique needs, considering industry standards, regulatory requirements, and the specific challenges your board faces.
5.) Select the Assessment Method
- Surveys and Questionnaires:Develop or select a comprehensive survey covering all focus areas. Questions should be designed to solicit honest and constructive feedback.
- Interviews:Conduct one-on-one interviews with board members, the CEO, and other relevant stakeholders to gather deeper insights.
- Observation:Consider observing board meetings to assess dynamics, participation, and decision-making processes in real time.
- External Facilitation:Engage an external consultant or advisor to facilitate the assessment, ensuring objectivity and expertise.
6.) Collect and Analyze Data
- Administer the Tools:Distribute surveys and conduct interviews. Ensure anonymity if required to encourage candor.
- Analyze Responses:Aggregate the data and look for patterns, strengths, weaknesses, and areas for improvement.
- Benchmarking:Compare the results against industry benchmarks or best practices to gauge the board’s performance relative to peers.
7.) Develop a Report
- Summary of Findings:Compile the findings into a clear and concise report, highlighting key insights, strengths, and areas for improvement.
- Recommendations:Offer actionable recommendations based on the assessment results, such as training for directors, restructuring committees, or refining board processes.
8.) Review with the Board
- Presentation:Present the assessment findings and recommendations to the board in a formal meeting.
- Discussion:Facilitate an open discussion about the results, allowing board members to reflect on the feedback and take ownership of the next steps. This empowers them to contribute to the board’s continuous improvement.
9.) Action Plan and Follow-Up
- Action Plan:Develop a concrete action plan to address the identified areas for improvement. Assign responsibilities and set timelines for implementation.
- Monitoring Progress:Establish a process for monitoring progress and revisiting the assessment periodically to ensure continuous improvement.
10.) Continuous Improvement
- Regular Assessments:Make board assessments a regular part of your governance practices to enhance board effectiveness continually.
- Ongoing Education:Consider continuing training and development programs for board members to keep skills and knowledge up-to-date.
By starting with this board assessment process at Cornerstone, we can conduct a thorough, objective, and aligned search for new board initiatives that fits our clients’ strategic goals.
For more information, please contact one of our CEO & Board Practice Group leaders:
Simon Wan
Cornerstone Shanghai
Larry Shoemaker
Cornerstone Atlanta
Lydia Goutas
Cornerstone Vienna
Vijay Karkare
Cornerstone India