The team at Mertons have been busy assisting ASX listed and other public & private company boards prepare a skills based matrix in line with Recommendation 2.2 of the ASX Corporate Governance Council Corporate Governance Principles and Recommendations (3rd Edition) (ASX CGPR).
“Having a board “skills matrix” is a useful tool that can help identify any gaps in the collective skills of the board that should be addressed as part of a listed entity’s professional development initiatives for directors (see recommendation 2.6) and in its board succession planning.”
Often it falls to the Company Secretary to organise an internal process to populate a skills matrix or engage an experienced external party to facilitate the process.
For those tasked with the Skill Matrix process, we offer these tips.
The Skills Matrix should be heavily influenced by the Strategic Plan of the company and include skills required over different time frames. Are your new directors fully conversant with this strategy?
Offer quantifiable descriptions of skill levels – by virtue of their position Directors may find it hard to be critical of their own skill set, without considered and detailed parameters.
Few boards can boast a composition that have all the skills in all the key areas. Consider including senior management in the process to give a richer understanding of their skills base and which areas still have gaps that require attention.
The skills matrix should be re-considered in the event of a change in directorate or strategy and re-visited at least annually to monitor progress on Board composition.
Our team has provided company secretarial and corporate governance services to ASX listed companies for over 20 years and helped manage their obligations using a responsive and effective approach.
If you’d like to discuss how we can help you with a Skills Matrix to contact Mark Licciardo on (03) 8689 9997.