Board governance is a critical structure for corporations to succeed. It combines tried and true principles with best practices that allow boards to deal with complexity and take their organizations to the next level.
A set of clear guidelines establishes the direction of a business ensures compliance and offers guidance for managing risk. It also sets the tone for corporate culture and accountability. Good governance isn’t always easy, especially when there are so many things on the line. We’ve put together the top governance tips for boards to build ethical, legally compliant and efficient organizations.
Develop a strategic Agenda for the future
One of the most important things boards that are well-run make a plan for the future. This sets directors up with a goal and ensures their time is devoted to the most important aspects of the organization. This could involve establishing a leadership development program that will help develop the board’s next generation of 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 on whistleblowing, and a policy regarding conflict of interest. Boards should clearly communicate their policies and ensure that all members understand their obligations.
Avoid Micromanaging
The most effective boards are ones that oversee operations but don’t interfere in the day-to-day management of personnel and operations. This lets the executive management concentrate on strategic issues. Additionally, avoiding micromanaging enables the board to better serve their stakeholders.