Board governance is a critical structure for companies to succeed. It combines tried and true principles with the most effective practices to assist boards in navigating complexity and propel the organization to the next stage.
A clear set of rules determines the direction of a company, oversees compliance and provides the necessary expertise to manage risk. It also sets the foundation for corporate culture and accountability. But with so much to discuss, good governance requires a lot of effort and collaboration. We’ve put together the top guidelines for board governance to create ethical, compliant and efficient organizations.
Identify a strategic agenda for the future
One of the most important things that a well-run board does is establish a clear and ambitious plan for the future. This gives directors a clear focus and ensures that their time is spent in a way that’s most profitable for the organization. This could involve the creation of a leadership development program to develop the next generation of board leaders.
Create a Culture of Accountability
Great boards are recognized by their strict standards in ethical and legal compliance. This includes a strong code of conduct, a procedure for whistleblowing, and a policy regarding conflict of interest. Boards must be clear about their policies and make sure that all members are aware of their responsibilities.
Avoid Micromanaging
The most effective boards are those that have oversight but don’t become involved in the day-today management of operations and staff. This allows the executive management to focus on strategic issues. Additionally, avoiding micromanaging enables the board to better serve their clients.
