Page 127 - SBL Integrated Workbook STUDENT 2018
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The board of directors
Directors’ induction and CPD
3.1 Induction
Although aimed at NEDs, the principles of an induction programme will be the
same for new executive directors coming to the company from another
organisation.
For an internally-promoted director, it will depend on the person's background
as to which aspects of the programme must be undertaken.
It is important, for effective participation in board strategy development, not only
for the board to get to know the new NED, but also for the NED to build
relationships with the existing board and employees below board level.
3.2 Objectives of induction
To communicate vision and culture.
To communicate practical procedural duties.
To reduce the time taken for an individual to become productive in their duties.
To assimilate an individual as a welcome member of the board.
To ensure retention of individuals for future periods.
3.3 CPD requirements
The following detail offers guidance on directors CPD requirements:
To run an effective board, companies need to provide resources for developing
and refreshing the knowledge and skills of their directors, including the NEDs.
The chairman should address the developmental needs of the board as a whole
with a view to enhancing its effectiveness as a team.
The chairman should also lead in identifying the development needs of
individual directors, with the company secretary playing a key role in facilitating
provision.
NEDs should be prepared to devote time to keeping their skills up to date.
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