Board governance is an essential aspect of business, and it can be a challenge to create a team that is able to work together to make decisions in the best interest of the business. The best board governance advice can help you create an organization with a diverse variety of abilities, experiences and backgrounds that works well together to make choices and reflects the diversity of your company.
One of the most important suggestions for board governance is to ensure that the board is aware of its purpose, how it works with management and how it interacts between the two. This helps reduce conflict and friction while ensuring that the board is effective and capable of achieving its strategic objectives.
Another suggestion is to implement an ongoing evaluation process for board members. This includes an initial evaluation as well as regular assessments and a way to address any concerns regarding performance. This will ensure that the proper people are in the proper roles and that all issues have been addressed.
Great boards also know how crucial it is to have a balance of new members who bring new ideas, as well as experienced directors who have expertise in certain areas. They accomplish this by establishing an ongoing schedule for board renewal and rotation.
Finally, a good board will have a plan to select the next CEO. This is a critical task which can either make or break the company. The best boards can plan for this by maintaining open communication with the current CEO, developing internal candidates and spotting potential external candidates.