Board governance is the critical structure that sets corporations up for success. It blends tried-and-tested principles with best practices that enable boards to tackle the challenges and take their organizations to the next level.
A clear set of guidelines establishes the direction of a business, oversees compliance and provides experts to manage risk. It also sets the tone for corporate culture and accountability. Good governance is not easy especially when there are so many things at stake. We’ve put together the top tips for governance on the board to build ethical, compliant and effective organizations.
Develop a plan of action for the future
One of the most important things that a well-run board does is create a comprehensive 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 could include establishing a leadership program to develop the next generation of board directors.
Establish a culture of accountability
The best boards are known for having high standards of ethical and legal compliance. This includes a strict code, a policy on whistleblowing and a policy on conflict of interest. It’s crucial that boards clearly explain these policies and ensure that everyone is aware of their obligations.
Avoid Micromanaging
The most effective boards are ones that oversee operations but don’t get involved with the day-today management staff and operations. This allows the executive management to focus on strategic issues. In addition, avoiding micromanaging allows the board to better serve their clients.
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