Porto Business School, in partnership with Odgers Board Solutions, hosted the event “Board Effectiveness: The Portuguese Case” on March 25, bringing together business leaders, board members, and experts to discuss one of the most critical topics in contemporary governance: the impact of board effectiveness on organizational performance.
Board Effectiveness as a Driver of Performance
The event was marked by the presentation of the pioneering study Odgers Board Survey – The Effectiveness of Portuguese Boards, which gathered insights from more than 150 executive and non-executive directors from companies across different sectors, providing a comprehensive view of board realities in Portugal.
The results are clear: the effectiveness of Boards of Directors is directly linked to organizational performance and their ability to respond to future challenges. Companies with more effective boards achieve up to 53% higher performance levels and are better prepared for environments of high uncertainty.
However, the study also highlights significant gaps. Although 81% of participants believe boards will become even more relevant in the future, only 21% consider their boards to be operating at the highest level of effectiveness.
Key findings from the study
- Board effectiveness varies widely across organizations, regardless of size or ownership structure.
- The “People and Skills” dimension emerges as the most critical, revealing weaknesses in composition, diversity, and succession planning.
- Only 13% of boards have clear succession plans for Board/CEO roles, compromising strategic continuity.
- Just 19% of organizations regularly review their board composition.
- Only 17% of boards adopt a truly proactive approach, focused on anticipating change.
- Only 25% of leaders consider their board’s discussion and decision-making capacity to be high.
New strategic priorities and action plan
The study also reveals a significant shift in board priorities. Topics such as cybersecurity and geopolitical risks are emerging as central concerns, replacing previously dominant areas.
To address these challenges, an action plan was presented based on four key priorities:
- Strengthen board evaluation, identifying critical competencies and development areas.
- Identify the right people, ensuring diverse profiles and strategic alignment, including structured succession.
- Adapt the strategic agenda to emerging challenges.
- Structure more effective governance processes aligned with the role of boards.
These priorities are also reflected in organizational investment intentions, with a focus on board development and training (50%), structured evaluation (46%), and governance model review (30%).
For Patrícia Teixeira Lopes, Vice Dean of Porto Business School:
“In an increasingly complex context, the effectiveness of Boards of Directors is no longer just a governance issue but a critical factor for value creation. This study shows that the future of organizations increasingly depends on boards’ ability to anticipate, challenge, and lead with vision.”
Nuno Fernandes, Managing Partner at Odgers Board Solutions, added:
“The results are clear: board effectiveness is directly associated with organizational performance and the ability to respond to future challenges. Companies with more effective boards achieve up to 53% higher performance levels and are better prepared for highly uncertain environments.”
The event also featured a panel discussion with Ana Paula Marques (EDP), João Castello Branco (Banco CTT), and Rita Silva Domingues (BA Glass), moderated by Luís Sítima, providing an in-depth reflection on current practices and the future of governance in Portugal.
The session concluded with a networking moment, reinforcing Porto Business School’s role as a platform for reflection and leadership development to address the challenges shaping the future of organizations.
Conclusion
The effectiveness of Boards of Directors is a critical factor in organizational performance, directly influencing the ability to anticipate challenges, make strategic decisions, and respond to highly uncertain environments. In this context, Porto Business School reinforces its role as a platform for leadership development and strategic thinking, preparing boards to create sustainable value.