The Supervisory Board’s foremost and most important task is to select suitable, qualified and experienced members for the Management Board and Supervisory Board and to recruit them for the company. The Supervisory Board must ensure that the members of the Management Board and Supervisory Board have the knowledge, skills and experience required to properly fulfil their duties at all times.

The recruitment of suitable board members requires clear skills profiles that must be aligned with the company’s strategy and its current situation, i.e. these looks different if the company is in a reorganisation situation, a change of strategy or in a phase of international expansion. It is also important that a candidate can fit in with the existing team and integrate quickly, and that they fit in with the corporate culture. Trusting cooperation within the board is crucial for the success of the company.

A well-planned and managed succession process is key to the performance of the board, especially for board members. A change can have a significant impact on the company’s operations and strategy.

Structured succession planning for the prominent role of the Chairman of the Supervisory Board and the committee chairmen is of great importance for the Supervisory Board. The Chairman of the Supervisory Board plays a key role in the fulfilment of the Supervisory Board’s monitoring and advisory mandate. A good chairman characterises the culture of discussion and thus the quality of the deliberations in the full board in the sense of a participative management style, so that emotional conflicts are more likely to be avoided and a positive basic climate is created that enables a constructive and critical discussion of substantive issues in plenary sessions.

HEADSAHEAD’s services for supervisory boards: Together with the chairman of the supervisory board and, if necessary, the nomination committee, HEADSAHEAD’s competent and experienced consultants develop a long-term and robust succession plan that takes into account the current composition, the aforementioned points and the necessary flexibility in special situations. Thanks to our many years of extensive experience, we can provide you with expert support in succession planning for your management and supervisory boards. This involves designing an ongoing planning process in order to organise the transition and succession effectively and successfully. HEADSAHEAD consultants work closely with you to understand and manage the expectations of stakeholder groups. We work with you to develop the competency profiles to achieve the strategic goals set and make recommendations to ensure a smooth and effective succession process. The progress made is continuously tracked, also to ensure that the agreed timetables are adhered to. HEADSAHEAD thoroughly screens the candidates in question and presents you with those who are best suited.

The most important objective of a structured onboarding programme is for new members of the Management Board and Supervisory Board to gain an appropriate and rapid understanding of the business strategy, the functioning of the business model, the structure and culture of the company and the associated requirements.

Targeted familiarisation with company-specific topics and structures is very important for new members if they have not previously attended meetings in another capacity. This applies in particular when candidates take on a role on the Management Board or Supervisory Board for the first time, cannot draw on their own experience from similar activities or other mandates or come from abroad due to the increasing internationalisation of companies. For the latter in particular, it is important to understand the special features of the German two-tier board system and to be made aware of key differences and responsibilities.

The German Corporate Governance Code (GCGC) also recommends with regard to the Supervisory Board that the company should provide appropriate support to the members of the Supervisory Board when they take office.

HEADSAHEAD services for companies: Together with the responsible persons in your company and the Chairman of the Supervisory Board, the consultants from HEADSAHEAD coordinate the onboarding programme with you and the new member on an individual and tailored basis. A development plan is drawn up, meetings are coordinated, relevant documents for the induction programme are provided and explained and questions are answered. The induction programme is carried out within a clearly defined time frame.

HEADSAHEAD services for new members:

As a new board member, it is important from day one to master the new challenges in the shortest possible time and not to put your foot in your mouth. Your tasks are varied, and our onboarding programme is also designed for the first 3-6 months of your activity: HEADSAHEAD consultants will support you in your new management role and in establishing internal and external networks.

Most supervisory boards of listed companies follow the recommendation of the German Corporate Governance Code (GCGC) and regularly review their work. But is it just the fulfilment of an unpleasant duty to produce a report on one’s own work, or can the efficiency audit be used as a source of inspiration for improved supervisory board work?

Critics tend to see the self-assessment as a tedious formal exercise that also has the potential to cause considerable dissatisfaction on the Supervisory Board or put a strain on the relationship with the Management Board.  However, if the focus is on the fulfilment of tasks, the examination of the corporate strategy, the composition and remuneration of the Management Board as well as cooperation within the body and between the Supervisory Board and the Management Board, the efficiency review is of great benefit. This is because these topics determine the value contribution of the Supervisory Board and the efficiency of its processes. Follow-up surveys examine the extent to which suggestions for improvement from the past have been successfully implemented.

The self-assessment can be carried out in different ways: Graded according to the effort involved, the spectrum ranges from pure discussion within the supervisory board to a survey by questionnaire and personal interviews. Pure discussion promises little added value if the discussion is not professionally moderated and conducted on the basis of a systematic list of topics. If a company uses questionnaires, these must be well structured and “appropriate” for the company. Personal interviews also enable nuances to be recorded and queries to be clarified. The survey can also be better anonymised by an independent third party in order to contribute to a more open expression of opinion

HEADSAHEAD’s services for the supervisory board: HEADSAHEAD’s competent and experienced consultants work closely with you to understand and manage expectations. We design company-specific questionnaires, conduct individual interviews with all stakeholders and present the results to the board after consultation with the chairman of the supervisory board. As a trusted advisor, we identify with your specific requirements and potential for improvement in the search for solutions and facilitate structured and continuous further development in order to strengthen board collaboration and improve its effectiveness.

The demands on management and supervisory boards, especially their chairmen, are increasing, and their continuous professional development is becoming correspondingly important. In addition, company managers expect both their management board members and the chairman of the supervisory board to adopt an attitude – in an environment that is exposed to many challenges. In practice, the Chairman of the Supervisory Board is the linchpin of successful Supervisory Board work, as he is the only member of the Supervisory Board who is continuously and intensively involved in all important issues by the Management Board, even between meetings. This gives him a considerable information advantage, which implies a special management responsibility.

For him and the Management Board, there are not only current geopolitical aspects to consider, but also ongoing technological change, in which complex tasks such as sustainability issues must be mastered.

HEADSAHEAD services for board members and supervisory board chairmen: We prepare leaders for their first role on the management board or as supervisory board chairman and support them in becoming more effective within the scope of their mandate. This enables them to better manage the increasing complexity and increase the efficiency of their work on the management board or supervisory board, particularly in difficult and critical situations, in order to fulfil the numerous interests of various stakeholders.

The Supervisory Board is the central element in the system of corporate control. Its core task is to ensure that the Management Board fulfils its duty of care. Whereas in the past the Supervisory Board mandate was often regarded as a quasi-honourary office, the German Corporate Governance Code now stipulates that every member is obliged to undergo training and further training in all relevant areas of Supervisory Board activity. Regular further training and its implementation in practice are key factors in being able to adapt to new situations and areas of expertise.

HEADSAHEAD services for supervisory boards and companies: We offer tailor-made training and further education programmes for all issues relevant to the supervisory board – both as individual training courses and as committee training courses.