Board Governance Tips – How to Effectively Lead a Board
The primary function of a board is to oversee the strategic goals of an organisation and delegate the day-today operations to the executive team. However, many business owners aren’t sure how a board of directors can be effective when they are self-confident entrepreneurs and eager to run their own show.
As the number of searches for “board governance tips” rises, it’s clear that this is an important subject for business leaders today. It could be due to recent scandals have brought attention to corporate accountability, or that a lack of board governance is a recipe for disaster.
Boards must be independent in their decisions. This is among the most important aspects of good governance. This means they should disregard any external interest that might influence their judgment, whether they be personal beliefs or friendships with fellow directors. It is also important to not play favorites, and only grant relatives and friends positions if they’re truly an appropriate fit for the organization.
A well-organized agenda will make any board meeting more effective. It should be arranged into categories such as items for information, items for action, and strategic discussions. This will facilitate board discussions and reduce time, since fewer minutes are spent on non-controversial topics. Similar to the suggestions of the committee smaller, non-controversial items should also be grouped together in a consent schedule to allow them to be approved by a simple majority vote.
