Governance of boards is a crucial area of business and often it can be difficult to create a group that can make decisions in the best interest of the business. The best advice on board governance can help you establish the perfect board with a broad array of abilities, knowledge and backgrounds that work together to make decisions and reflect the diversity of your company.
One of the most important tips for governing boards is to make sure that the board is aware of its role, how it works with management and how it interacts between the two. This reduces friction and conflict while ensuring the board is effective and capable of achieving its strategic objectives.
Another tip is to employ the same evaluation procedure for board members. This includes an initial assessment followed by regular evaluations as well as an approach to address any concerns regarding performance. This will ensure that the appropriate people are performing in the correct roles and that all issues have been addressed.
Great boards also appreciate the importance of balancing between new members with fresh ideas and experienced directors who can provide expertise in particular areas. This is why they ensure that they have a regular program of renewal and rotation.
A good board will also have a strategy in place for selecting the new CEO. This is a crucial job that can make or ruin the company. The best boards plan for this by establishing open communication with the CEO in place in developing internal candidates, and spotting potential external candidates.