A board of directors provides oversight of a company as well as its governance practices and also provides support for the strategies proposed by the management. They also ensure that the company is operating legally and in the best interests of shareholders and other stakeholders. The board may be made consisting of outsiders and insiders each elected to a specific term. The ideal board is well-rounded, diverse and has a wide spectrum of experience, skills and backgrounds. They should reflect the organization’s fundamental values and demonstrate that they are committed to its mission.
In addition to providing leadership and expertise in governance, boards should be willing to take risks and take difficult decisions. They should also exhibit an understanding of their fiduciary responsibilities and demonstrate their ability to work in a team-oriented way. They should be able articulate the vision and strategic direction of their company and know how to develop and implement a plan.
Boards should be prepared to react quickly to changes in the business and social environments. They must be proactive in their approach to managing risk and opportunity in the areas of talent management corporate finance as well as succession planning for the CEO, organizational culture as well as community brand awareness and outreach, as well fundraising.
To establish a strong board, it is an ideal idea to build an inventory of qualified candidates and invite candidates to apply as soon as vacancies arise. This process is as simple as posting a job announcement on LinkedIn or distributing an email announcement.
