Board governance is the crucial structure that helps set corporations up for success. It blends tried-and-tested principles with best practices that enable boards to manage complexity and take their business to the next level.
A clear set of rules establishes the direction of a business and ensures compliance. It also provides experts to manage risk. It also sets the tone of corporate ethics and accountability. With so many things to discuss it’s a lot of work and collaboration. This is why we’ve collected our top tips for board governance to help you create ethical, efficient and profitable businesses.
Set out a strategy for the future
One of the most important things that boards that are well-run set an ambitious agenda for the future. This gives directors a goal and ensures that their time is spent on the most important things for the business. This could include developing a leadership program to nurture the next generation of board leaders.
Create a culture of accountability
The best boards are known to have high standards of ethical and legal compliance. This includes a strong code, a policy on whistleblowing and a policy on conflict of interest. Boards should clearly communicate their policies and make sure that all members understand their responsibilities.
Avoid Micromanaging
The most effective boards are ones that oversee operations but are not involved with the day-today management of personnel and operations. This allows management to be more focused on strategic issues. Furthermore, not having to micromanage allows the board to better serve their stakeholders.