National Grid 2016 Annual Report Download - page 55

Update on actions from last year
Area Actions Commentary
Environment Optimise the boardroom layout to
create a more inclusive environment
for members and presenters.
Responsibility: Board members/
Group General Counsel &
Company Secretary
For all meetings the Group General Counsel & Company Secretary makes sure
the boardroom layout is appropriate to enable open discussion and promote
an effective meeting. The Group General Counsel & Company Secretary also
highlights any new presenters to the Board in the Chairman’s briefing material
and the relevant Executive Director introduces the presenter to the meeting.
Environment Continue to create a more open
boardroom atmosphere and culture.
Responsibility: Chairman/
Board members
The Chairman manages the boardroom environment throughout meetings,
encouraging open discussion on all matters and making sure all Board
members are involved. A definite upward trend of contribution by all Board
members has been seen. The Group General Counsel & Company Secretary
makes sure there is appropriate time allocated to all agenda items and makes
arrangements to foster an open atmosphere and culture.
Board discussions Maximise the effectiveness of
Board discussions.
Responsibility: Chairman/
Executive Directors/Group
General Counsel & Company
Secretary
The information going to the Board is reviewed every six months through
meetings between the Chairman, the Chief Executive and the Group General
Counsel & Company Secretary. The new reporting framework delivered
by external specialists last year has continued to provide the Board and
committees with clearer, more concise papers. This has helped improve
Board discussions and decision making. At the December 2015 Executive
Committee meeting the Group General Counsel & Company Secretary updated
the Executive members on the role they play in drafting the papers. We will
continue to review and make sure only relevant information is provided to the
Board. A further refresh of the Board paper process will commence this year.
After large discussion items, the Chairman summarises the key points from the
discussion. He also confirms what is expected next, if anything, and if there are
any actions for relevant Board members.
Board discussions Use a diversity of thinking styles.
Responsibility: Chairman/
Board members
The Board members have become more flexible with their questioning taking
into account their thinking styles, which varies according to the topic. At the post
meetings with the Non-executive Directors, the Chairman makes sure they
provide feedback on behaviours displayed during the meeting.
Board focus Continue to manage the
strategy agenda.
Responsibility: Chairman/
Chief Executive/Group General
Counsel & Company Secretary
Significant time has been scheduled for strategy on the Board meeting agendas.
In addition, we usually hold two half-day strategy sessions during the year which
take place on a separate day to the Board meeting, to make sure the strategy
discussions are productive and stimulating. In July 2016 there will be a full
strategy away day.
Additionally, the Chief Executive has developed a detailed schedule of Board
strategy updates for the forthcoming year and has recently circulated to the
Board the material to be covered at the July strategy day.
Individual performance
As part of our annual evaluation process, Mark Williamson,
as Senior Independent Director, led a review of the
Chairman’s performance. The Non-executive Directors,
with input from the Executive Directors, assessed his
ability to fulfill his role as Chairman. It was concluded that
the Chairman continued to show effective leadership of
the Board and his actions continued to influence the Board
and the wider organisation. Mark Williamson discussed
the feedback and development opportunities with
the Chairman.
Progress against actions from 2014/15
Progress against the actions from last year’s internally
facilitated evaluation have been monitored by the Group
General Counsel & Company Secretary and the Chairman
throughout the year and an update on progress was
provided at the April Board meeting. A commentary
against each action from last year’s review is set out below.
Last year an evaluation of committee performance was
also conducted by the Chairman of each of the Board
committees, following a similar process to that conducted
by the Board. Where relevant, action plans were prepared
for the committees and progress against the actions was
monitored throughout the year.
Board and
committee
evaluation cycle
Year 1
2015/16
Externally
facilitated
evaluation
conducted
by independent
consultants
Year 2
2016/17
Internal
review
Year 3
2017/18
Internal
review
53National Grid Annual Report and Accounts 2015/16
Corporate Governance
Board evaluation