Governance of the board is the essential structure that prepares corporations for success. It combines tried-and-true principles with best practices that enable boards to deal with complexity and take their organization to the next level.
A clear set of guidelines defines a company’s direction and oversees compliance. It also provides expertise to manage risk. It sets the direction for corporate culture as well as accountability. But with so much on the line the need for good governance is lots of effort and collaboration. That’s why we’ve gathered our top tips for governance on boards to help you create an ethical, legally compliant and efficient businesses.
Identify a strategic agenda for the future
One of the most important things that a well-run board does is make a plan for the future. This provides directors with a direction and ensures their time is focused on the most important things for the organization. This could mean establishing a leadership development program that will help develop the next generation of board leaders.
Create an environment of accountability
The best boards are known to have high standards of ethics and legal compliance. This includes a strict code of conduct, a policy regarding whistleblowing as well as a policy on conflict of interest. It is essential for boards to clearly out their policies and ensure that everyone is aware of their obligations.
Avoid Micromanaging
The most effective boards are those that have oversight, but do not be involved in the day-today management of staff and operations. This allows the executive management to concentrate on strategic issues. The board will be able to better serve its stakeholders by eliminating micromanagement.