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An induction program for new non-executive directors (NEDs) joining a company's board is crucial for helping them understand their role and responsibilities, as well as providing them with the knowledge and tools needed to contribute effectively.
Here’s a typical list of items that might be included in such an induction programme:
1. Company overview
- History and background
- Mission, vision, and values
- Organizational structure
- Key products or services
2. Board structure and governance
- Profiles of board members
- Board composition and committees
- Roles and responsibilities of board members
- Corporate governance policies and procedures
- Board meeting schedules and protocols
- Important company and board-related events
- Current board terms and conditions, including compensation and expense reimbursement policies
3. Strategic plan and business model
- Current strategic objectives
- Market position and competitive landscape
- Business model and revenue streams
4. Financial overview
- Recent financial statements and annual reports
- Auditor's reports and significant accounting policies
- Key financial metrics and performance indicators
- Budgeting and forecasting processes
5. Risk management and compliance
- Risk management framework and policies
- Current risk register and key risk exposures
- Regulatory environment and compliance requirements
- Internal control systems
6. Legal and regulatory responsibilities
- Overview of the regulatory environment applicable to the company
- Key legal issues currently facing the company
- Fiduciary duties
- Conflict of interest policies
- Insider trading rules
- Data protection and privacy regulations
7. Company policies
- Code of conduct
- Ethics policies
- Whistleblowing procedures
- Diversity and inclusion initiatives
8. Stakeholder relations
- Shareholder engagement
- Investor relations practices
- Community and environmental initiatives
9. Executive team introductions
- Meet key executives and senior management
- Profiles of key executives
- Understanding of management structure and reporting lines
10. Industry context
- Market trends and challenges
- Competitive landscape
- Regulatory environment specific to the industry
11. Site visits and operations overview
- Key operational processes and understanding of core business processes
- Overview of major projects and initiatives
- Significant partnerships, joint ventures, and alliances
- Tour of key facilities or operations, and people
12. Technology and information systems
- Overview of key IT systems and infrastructure
- Cybersecurity measures and data protection
- Key software and technology tools used within the company
13. Human resources overview
- Organizational culture
- Talent management and succession planning
- Remuneration policies for executives and employees
14. Crisis management and business continuity
- Emergency response procedures
- Business continuity plans
15. Board evaluation process
- Overview of board performance evaluation processes and criteria
- Self-assessment tools and performance feedback mechanisms
16. Ongoing professional development
- Training opportunities
- Industry conferences and events
17. Key external relationships
- Introduction to external auditors
- Overview of key partnerships and alliances
18. Corporate social responsibility (CSR) and Environmental, Social, and Governance (ESG) initiatives
- Sustainability practices
- Social impact programs
19. Media and public relations policies
- Communication guidelines
- Social media policies
20. Board materials and resources
- Articles of Association.
- Bylaws and charters of the company.
- Access to past board papers and minutes
- Board portal or document management system orientation
21. Mentorship Arrangement
- Assignment of a mentor from among the existing board members
- Regular check-ins and support during the initial tenure
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