The board of directors supervises the company’s governance practices and helps to implement the company’s plan of action. It also ensures that the company is operating legally and in the best interests of shareholders and other stakeholders. The board could be made up of a mixture of outsiders as well as insiders, each of them elected for a specific term. The ideal board will be balanced and diverse in abilities, experience, and background. They should embody the company’s core values and show that they are committed to its mission.
In addition to providing guidance and leadership boards must be willing to take risks and make difficult decisions. They must also show an understanding of and ability to work as a team. They should be able communicate the vision and strategic direction of their company and know how to develop and implement the plan.
Boards should be prepared to quickly react to changes in business and social situations. They must be proactive in their approach to managing opportunities and risks in the areas of talent management, corporate finance as well as succession planning for the CEO, organizational culture, community brand awareness, and outreach, as well as fundraising.
To create a solid board, it’s an ideal idea to build an inventory of qualified candidates and invite candidates to apply as soon as openings become available. It’s as easy as posting a job ad on LinkedIn or distributing an email announcement.
