Good communication between the Board of Directors and the chief executive is a key factor of success in any organization. There are three different systems for communicating the Board’s goals, one of which results in the clearest form of communication and the highest level of overall performance. This tool shows how organizational performance improves as a more effective system of communication is implemented. (2 pages)

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How a Board of Directors Effectively Communicates its Goals

In our experience, there are three different systems for communicating the Board’s goals, one of which results in the clearest form of communication and the highest level of overall performance. These are the three systems:

1. Resolutions approved by the Board.

2. Strategic plans developed in consultation with the Board and approved by the Board.

3. Strategic directives or policies developed and adopted by the Board.

The chart below shows the level of organizational performance correlated with each of these systems of communication:

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