Governance of the board is a critical area of business, and it isn’t easy to create a team that works together to make decisions in the best interest of the business. The best advice on board governance can help you create an organization with a diverse array of abilities, knowledge and backgrounds that work together to make decisions and reflects the diversity of your company.
One of the most important guidelines for board governance is to ensure that the board has a clear understanding of its responsibilities and the responsibilities of management and how the two work together. This can help reduce conflict and friction, while making sure that the board is functioning and able to meet its strategic goals.
Another tip is to have an in-line method for the evaluation of board members. This includes an initial evaluation along with regular assessments, and a way to address any concerns regarding performance. This will help to ensure that the right people are in the appropriate roles and that all issues are addressed.
The best boards also recognize the importance of having a balance between new members with fresh ideas and experienced directors who can provide expertise in particular areas. They do this by maintaining regular timetables for board renewal and rotation.
A well-run board will have a plan for deciding who will be the next CEO. This is a critical task that can decide the fate of a company. The best boards plan for this by establishing open communication with the CEO in place in developing internal candidates, and spotting potential candidates from outside.