In 2003 the “Higgs Suggestions for Good Practice” stated that the induction process should aim to achieve three things, and these remain relevant today:
- Build an understanding of the nature of the company, its business and the markets in which it operates
- Build a link with the company’s people
- Build an understanding of the company’s main relationships
The revised guidance draws out two further elements: ensuring an understanding of
- The role of a director
- The framework within which the board operates
As well as providing a checklist of topics and documents to consider covering in an induction programme, the guidance makes suggestions for programme design on the basis that the manner in which any induction programme is delivered is an essential factor in its success.
In its accompanying press release, ICSA confirmed that it is currently in the process of updating its suite of guidance notes which were previously appended to the Higgs guidance. The Financial Reporting Council’s “Guidance on Board Effectiveness”, which replaced the Higgs guidance, was drafted by ICSA with the help of a Steering Group.