The board of directors oversees the company’s governance practices and supports the management’s strategy. It also ensures that the company operates lawfully and in the best interest of shareholders and other stakeholders. The board could comprise a mix of inside and outgoing members, each elected for a set term. The ideal board is diverse, well-rounded, and has a wide range of skills, experiences and backgrounds. They will reflect the organization’s fundamental values and demonstrate a commitment to its mission.
In addition to providing leadership and governance expertise, boards should be willing to embrace risks and make difficult decisions. They must also show an understanding of the business and the ability to collaborate in a team-oriented manner. They should be able to articulate the strategic vision and direction for their company and know how to develop and execute the plan of action.
Boards need to be ready to react quickly to changes in the business and social situations. They must be proactive in the areas of risk and opportunity, the management of talent and corporate finance.
An effective way to build a solid board of directors is to create an applicant database of qualified candidates and inviting them to apply for jobs as soon as openings arise. This is as simple as posting a LinkedIn job advertisement or sending out an email message.
