A board of directors provides oversight of a company and its policies regarding governance, and offers support for the plan of action proposed by the management. It also ensures that the business operates in a legal manner and is in the best interests of shareholders and other stakeholders. The board may comprise a mix of inside and outside members, each elected for a specified period of time. The ideal board will be balanced and diverse in expertise, experience, and background. They will embody an organization’s fundamental values and demonstrate a commitment to the organization’s mission.
Boards should also be able to take risk and make difficult decisions. They should also exhibit an knowledge of their fiduciary duties and demonstrate their ability to work with others in a collaborative manner. They must be able to communicate the vision and direction for their organization and understand how to formulate and implement the plan of action.
Boards need to be ready for rapid response to changes in the business and social settings. They should be proactive in their approach to risk and opportunity management and management of talent corporate finance, CEO succession planning, organizational culture, community brand awareness, and outreach, and www.managingbiz.net/ fundraising.
A good way to build a strong board of directors is by establishing an applicant database of qualified candidates and inviting them to apply for jobs when openings become available. This process is as simple as posting a job announcement on LinkedIn or distributing an email announcement.
