McKinsey survey - Governance since the economics crisis

The guys at McKinsey have fired out an interesting survey on the activities they currently spend time on (and indeed what they would like to spend more time on!) Sample is around 1,600 respondents with a decent worldwide spread in April 2011. What they came up with was;

• Boards are spending around 14% of their time on corporate governance and compliance - relative to the value the activity adds, fewer boards wish to increase time spent on this matter (and more wish to reduce time spent) than on any other activity. Most would rather increase time spent on Strategy and Talent Management.
• Surprising number of boards either develop strategy with management (41%) - wouldn't say I am phenomenally convinced by boards trying to do "a bit of both"
• Only 14% have "complete understanding" of the risks that their company faces, with 32% having "little or no" understanding - sobering and, in the context of their wish to spend more time on strategy, offensive.
• Almost half though a better mix of board member backgrounds/skills would improve performance, a third would prefer more timely company information, and a quarter would prefer better induction and director assessment processes
• Both Chairs and normal directors would prefer to spend significantly more time on board work (around an extra 33%)

Nice bit of work, as you would expect from the big boys. Always good to take a look at the wider picture every now and then, and in this instance it points at boards wishing to get busy with anything as long at it doesn't involve risk.