ICSA has updated (dated June 2012, published July 2012) its guidance note on the induction of directors. The updated guidance can be read here. The introduction to the guidance says that:
“1.1 The objective of induction is to provide a new director with the information he or she will need to become as effective as possible in their role within the shortest practicable time.
1.2 In 2003 the ‘Higgs Suggestions for Good Practice’ stated that the induction process should aim to achieve three things, and these remain relevant today:
a. Build an understanding of the nature of the company, its business and the markets in which it operates.
b. Build a link with the company’s people.
c. Build an understanding of the company’s main relationships.
This note draws out two further elements: ensuring an understanding of (i) the role of a director and (ii) the framework within which the board operates.
1.3 As well as providing a checklist of topics and documents (section 4) to consider covering in an induction programme, this note makes suggestions for programme design (section 3) because the way in which any induction programme is delivered is an essential factor in its success.
1.4 The time taken to complete an induction will depend on the organisation, its size and complexity, but may take 12 months in order to cover a full board cycle.”
See also: Board effectiveness: guidance from the Financial Reporting Council
