Governance reviews and ensuring board effectiveness

On appointment to a multi-billion defined benefit scheme, we established that the way a Trustee Board was operating could be improved. We also recognised that Trustee skill sets could be better leveraged so that complex matters could be progressed more efficiently.

We initiated a Trustee Board effectiveness exercise to identify the measures that would improve the way the Board operated. This involved questionnaires that explored key areas and themes and one-to-one discussions.

Following a review and analysis of the results, we implemented training for the board that focused on scheme governance and board effectiveness best practice; we restructured trustee meetings to ensure that a detailed training session was provided ahead of the Trustee Board meeting where complex matters were being considered and decided, and refreshed the members of the sub-committees to ensure Trustee skill sets were being optimised.

We repeat this exercise on an annual basis and on any change to the Trustee Board. Decision-making is smoother and more robust as a result.

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