Board governance is a crucial structure for corporations to succeed. It combines tried-and-true principles with best practices that enable boards to tackle the challenges and elevate their organizations to the next level.
A set of clear guidelines defines the direction of a company ensures compliance and provides expertise for managing risk. It also sets the tone for corporate culture and accountability. Governance isn’t easy particularly when there are many things at stake. We’ve compiled our top board governance tips to help you build an ethical, legally compliant and efficient businesses.
Create a Strategic Agenda for the Future
One of the most important things that a well-governed board does is establish a clear and ambitious plan for the future. It gives directors a purpose and ensures that their time is devoted to the most valuable aspects for the organization. This may include the creation of a leadership development program to help the board’s next generation of leaders.
Create a Culture of Accountability
The best boards are known to have high standards of ethics and legal compliance. This includes a stringent code, a policy on whistleblowing and a policy on conflicts of interests. It is essential for boards to clearly explain these policies and ensure that all members are aware of their obligations.
Avoid Micromanaging
The most effective boards are ones that oversee operations but do not get involved with the day-today administration of personnel and operations. This allows executive management to concentrate on strategic issues. In addition, avoiding micromanaging allows the board to better serve their stakeholders.
