Building a Strong Board of Directors
A board of directors is responsible for the governance of a company and assists in implementing the company’s strategy. It is also responsible for ensuring that the company operates in a legal manner and is in the best interest of shareholders and other stakeholders. The board could be made consisting of outsiders and insiders, each of them elected for a specific term. The ideal board should be broad and diverse in terms of skills, experience, and background. They should embody the company’s fundamental values and demonstrate a commitment to the organization’s mission.
In addition to providing guidance and leadership Boards should also be prepared to accept risks and make difficult decisions. They should also demonstrate an understanding and ability to work as a team. They should be able articulate the vision and strategic direction of their company, and understand how to create and execute plans.
Boards need to be ready to quickly react to changes in business and social contexts. They must be proactive when it comes to potential and risk, talent management and corporate finance.
A good way to build a solid board of directors is by creating an applicant database of qualified candidates and inviting them to apply for positions whenever openings arise. This process is as easy as posting a job advertisement on LinkedIn or sending out an email announcement.