The board of directors is expected to provide guidance and oversee a wide range of business concerns. In order to do this effectively they must be involved in productive work. This means executing their decision-making obligations, completing committee assignments, and coordinating meetings efficiently. It also involves evaluating existing practices and introducing innovative strategies that boost board effectiveness efficiency, efficiency, and productivity.
Regular attendance at meetings is a basic indication of a board’s dedication to good governance and, in turn to the value-creating tasks that the business relies on them to carry out. It’s not enough. Nell Minow, a shareholder activist, says that “the boards of a number of our most well-known corporations have poor or no attendance records.” Some of the most prominent names on these boards seldom show up, and when they do they’re usually not prepared.
Induction programs that are tailored to the needs of directors who are new to the board help them quickly become familiar with their organizations. Continuing education helps keep board members informed about changes in law and industry that could impact their responsibilities. A growing number of boards have adopted culture initiatives to encourage openness and trust, in order to make the right decisions and reach their strategic goals.
Few boards have all the necessary expertise or skills Some boards opt to delegate a portion of their responsibilities to non-board members with particular expertise, experience, contacts or experience to serve on committees. This enables a wider array of people to take part in the board’s activities, and gives busy professionals the opportunity to help their cause and cultivates talent for future board posts.