Welcome to your Directors Competency Quotient (DCQ) @ MentorMyBoard
Dear Director:
Welcome to the Directors Competency Quotient (DCQ).
This self-assessment tool will allow you to reflect upon and evaluate your performance/contributions as a Director. The purpose of this tool is to help determine competency levels, identify potential gaps in competency requirements and highlight areas where additional training and development may be required for your effective role as a member of the Board of Directors of a Company.
Even if you are an Aspiring Director, you can answer the questions based on your current knowledge and experience assuming you are the Director at present. Wherever references are made to board meetings, simply assume the role of the Director.
This tool is primarily qualitative in nature. It is recommended that it is used in conjunction and supported with other indicators and observations relating to the capabilities and attributes.
The inventory contains 60 items and will take about 45-60 minutes to complete, a small investment in your continuing development.
- Skim through the entire inventory, and familiarize yourself with it, before responding to the items.
- Focus exclusively on yourself as a director on this
- Circle only one response for each item; leave no
- Be honest and candid in your self-assessment. All directors excel in some areas and don’t in others; your responses should reflect this.
Please note that this inventory has been crafted to assess the most important aspects of your director role, but there may be some instances where specific items are not perfectly matched to your circumstances. Additionally, only the most important, not all, drivers of director performance and contribution are included here.
Take Your First Step Towards Being
AN EFFECTIVE MEMBER OF THE BOARD OF DIRECTORS
Against every statement, rate each on a scale of 1 to 5 as follows:
- Not at all 2. Rarely 3. Sometimes 4. Often 5. Very often
Answer the questions as you are (rather than how you think you should be).
Work quickly and go with your first reflex response!’
Sincerely,
The DCQ Team
@MentorMyBoard
* DCQ Logo and related Titles, Characters and Trademarks are reserved for use by Sankara Ramnath or U2K Consulting LLP or its Licensors.*
1.
I have a good general understanding of this organization, including its business model, strategies, structure, management, operations, and finances in addition to its key strengths and weaknesses
2.
I understand the characteristics of the industry in which the company operates, the key metrics and the key competitors.
3.
I know the company's products and the key resources required for business continuity.
4.
I understand how the company’s operational efficiency can be compared with industry standards and best practices.
5.
I understand how senior management evaluation and compensation can affect their performance and operational efficiency
6.
I understand how to read, analyze, and question the financial reports, statements, business plans, budgets and forecasts prepared by the management.
7.
I understand the purpose and uses of key financial ratios, financial trends, performance indicators, and peer group comparison reports. I can interpret, analyse, and discuss key ratios and metrics.
8.
I am aware of this organization’s capital allocation process and the board’s role in it. I understand the capital structure, Weighted Average Cost of Capital (WACC)
9.
I understand and can explain “off-balance sheet” items and contingent liabilities.
10.
I can explain when to recommend the use of external resources to investigate any significant issues or “red flags” that may arise or to validate the company's financial policies, plans, controls, and procedures where material weaknesses persist.
11.
I understand the role and objectives of the internal and external auditors.
12.
I can review the reports of the auditors and understand the implications of any adverse findings.
13.
I take part in the discussions and debates on audit reports.
14.
I contribute towards building suitable policies for future non-occurrence of any adverse events or comments.
15.
I comprehend the duties and obligations of the Board's audit committee.
16.
I understand the regulatory environment, policy development, and the policies required to meet legal, regulatory and governance requirements.
17.
I understand the responsibilities of a compliance officer and the necessary actions to take in the event of non-compliance.
18.
I am aware of the various Acts pertaining to the operations of the company. I can analyze the impact of any variance or non-compliance reported on the operations and legal consequences.
19.
I understand the workings of the various Board committees under the Companies Act and the roles and responsibilities of the Committee Members.
20.
I am aware of the individual regulatory requirements by the board members pertaining to various corporate laws, especially the Companies Act and related party transactions.
21.
I am aware of the role of a leader and can explain leadership behaviour.
22.
I encourage debate and diverse opinions and mediate discussions and deliberations to reach a consensus.
23.
I am aware of my responsibility to create more leadership and develop the leadership pipeline.
24.
I understand that the organisational culture starts from the top and it is the responsibility of a board member to be a role model and develop a positive organisational culture.
25.
I follow and promote the importance of continuous learning and director development.
26.
I am aware of and can describe the strategic planning process.
27.
I participate in strategic planning discussions (pre-planning analysis and planning sessions) and ongoing discussions on the success of the plan.
28.
I can explain how strategic plans and initiatives are evaluated and actions required to address strategic and operational inconsistencies.
29.
I understand the company’s Vision, Mission, Strategies and Goals.
30.
I can explain the relationship between a strategic plan, business plan, budgets and OKRs (Objectives and Key Results)
31.
I can clarify the board's responsibility in overseeing risk management and how they monitor and manage risks.
32.
I am knowledgeable about the different risks related to the company and understand enterprise risk management.
33.
I am familiar with the approaches used to establish risk appetite and risk tolerance.
34.
I can describe how risks can be managed and how they contribute to risk management strategies and policies.
35.
I am aware of the potential long-term opportunities in the industry and the company and how to develop them.
36.
I understand the elements and components of ESG and its linkages with sustainability.
37.
I understand the landscape and the expectations of the stakeholders and can explain the ESG risks and opportunities.
38.
I can frame critical questions to be addressed during a discussion on ESG Goals.
39.
I understand the impact of the company’s products and operations on ESG issues.
40.
I am aware of how ESG performance is measured, ensure regular ESG assessment and formulate an ESG growth plan. comprehend the duties and obligations of the Board's audit committee.
41.
I can identify the various stakeholders and am aware of the expectations of the different stakeholders.
42.
I can categorise the expectations as those which are legal and those which are guided by best practices and accordingly set and align the expectations.
43.
I can develop a stakeholder engagement plan to ensure that all stakeholders are satisfied. I am a willing and effective representative of and advocate for this organization in my dealings with external parties/constituents.
44.
I am aware of the feedback loop from various stakeholders and the importance of the appropriate reactions and pro-actions. I ensure that communication channels are always open and have a method of regular checks.
45.
I can identify a crisis, ensure that it is contained and develop proper public messaging through various media channels if required
46.
I carefully read through, and reflect upon, agenda materials prior to board meetings and come prepared to engage in discussions/deliberations. I arrive at board meetings on time and do not leave early.
47.
I ask questions to test/challenge the validity of premises, assumptions, estimates, and predictions underlying the recommendations/proposals coming before the board. I ask questions and request clarification when I don’t understand an issue.
48.
I actively participate in board meetings, sharing my ideas, expertise, experiences, opinions, and perspectives. I communicate my ideas clearly, precisely, and effectively.
49.
I listen to, and carefully consider, the views of other directors (even when disagreeing with them). I am willing to change my opinion (even strongly held ones) when presented with convincing counterarguments and facts.
50.
I am comfortable expressing a dissenting opinion and voting “no” when necessary. I support board policies, decisions, and actions; even those with which I disagree and/or voted against.
51.
I understand the relationship between the role of a CEO and the Board.
52.
I am aware of the board's processes and procedures. I come prepared for the board meeting and contribute to the board discussion.
53.
I can assess board performance, identify gaps, and describe the ways in which the board can improve its performance.
54.
I can explain and influence the need for critical metrics for the company for board review.
55.
I work towards building a cohesive board and contribute positively towards resolving conflicts in the board rooms to arrive at a consensus.
56.
I have a professional attitude towards promoting performance and meritocracy.
57.
2. I enjoy serving on board. My presence and participation add value to the board.
58.
I understand that the directors set the tone of the governance and are the role models for ethical standards in the company.
59.
I am competent/comfortable dealing with issues coming before the board regarding this organization’s challenges.
60.
I devote the necessary time and energy to fulfilling my commitments as a director on this board.
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