04 Aug Building a Strong Board of Directors
A board of directors provides supervision of a business and its governance practices and also provides support for the strategy formulated by the management. It also ensures the company is operating in compliance with the law and in the best interest of shareholders and other stakeholders. The board can be composed by a mix of insiders and outsiders, each of them elected for a specific period of time. The ideal board is multi-faceted and diverse in skills, experience, and background. They should embody the organization’s essential values and show a commitment to the purpose.
In addition to offering leadership and governance expertise boards must also be willing to embrace risks and make difficult decisions. They should also demonstrate an understanding and ability to collaborate in a team-oriented manner. They should be able to communicate the vision and direction for their company and know how to formulate and implement an action plan.
Boards should be prepared to react quickly to changes in business and social situations. They must be proactive in their approach to managing risk and opportunity and management of talent, corporate finance and succession planning for CEOs, organizational culture as well as community brand awareness and outreach, as well fundraising.
To create a solid board, it’s recommended to build a database of candidates who are qualified and invite them to apply as soon as job openings arise. It’s as simple as posting a LinkedIn job advertisement or sending out an email message.
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