Board governance is the crucial structure that allows corporations to be set for success. It is a combination of tried-and-true principles and best practices that enable boards to navigate complexity and elevate their organizations to the next level.
A set of clear guidelines defines the direction of a company it ensures compliance and offers guidance for managing risk. It also sets the tone of corporate culture and accountability. Governance isn’t easy especially when there are a lot of things at stake. That’s why we’ve gathered our top governance tips for boards to help you build ethical, compliant and successful organizations.
Create a strategic plan for the future
One of the most important things a well-governed board does is create a comprehensive plan for the future. This gives directors a direction and ensures that their time is spent in a way that’s most profitable for the organization. This could involve establishing a leadership development program to help 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 a stringent code of conduct, a policy on whistleblowing and a policy on conflict of interest. It’s important for boards to clearly communicate these policies and make sure that all members are aware of their obligations.
Avoid Micromanaging
The most effective boards are ones that oversee operations but are not involved with the day-today management of staff and operations. This allows executive management to focus on strategic issues. The board can better serve its members by not allowing micromanagement.
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