A board of directors provides oversight of a business and its governance practices, and offers support for the plan of action proposed by the management. It also ensures that the company is operating in compliance with the law and in the best interests of shareholders and other stakeholders. The board can comprise an assortment of inside and outgoing members, each elected for a specific period of time. The ideal board should be multi-faceted and diverse in terms of skills, experience, and background. They should reflect the company’s core value and demonstrate a commitment to the organization’s www.managingbiz.net/ mission.
Boards must also be willing to take risks and make tough decisions. They should also exhibit a deep understanding of their fiduciary responsibility and demonstrate their ability to work with others in a team-oriented way. They should be able articulate the strategic direction and vision of their organization and be able to create and execute plans.
Boards should be prepared to respond quickly to changes in the business and social contexts. They must be proactive in the areas of risk and opportunity, financial management, and talent management.
To establish a strong board, it is best to establish an applicant database and invite them to apply as soon as vacancies arise. This can be as easy as posting an advertisement for a job on LinkedIn or sending out an email announcement.