Board governance is a critical framework for businesses to be successful. It is a combination of tried-and-true principles and best practices that allow boards to tackle the challenges and take their organizations to the next level.
A clear set of rules sets the direction for a company and ensures compliance. It also provides expertise to manage risk. It also sets the foundation for corporate culture and accountability. With so many things on the table the need for good governance is a lot of effort and cooperation. We’ve put together the top tips for governance on the board to build ethical, legally compliant and efficient organizations.
Set out a strategy for the future
One of the most important things that boards that are well-run set an ambitious agenda for the future. This helps directors stay focused and ensures that their time is spent in a way that’s most useful to the business. This could mean establishing the leadership program needed to prepare the next generation of board leaders.
Create a Culture of Accountability
Great boards are known for their rigorous standards for ethical and legal compliance. This includes having a strong code of conduct as well as a whistleblowing procedure and an anti-conflict of interest policy. It’s crucial that boards clearly communicate these policies and make sure that everyone is aware of their responsibilities.
Avoid Micromanaging
The most effective boards will be those that provide oversight but do not get involved with the day-today management of staff and operations. This allows the executive management to focus on strategic issues. In addition, avoiding micromanaging allows the board to better serve their constituents.