Governance of the board is the essential structure that allows corporations to be set for success. It blends tried and tested guidelines with best practices to help boards navigate the complexities and move the company to the next stage.
A set of clear guidelines defines the direction of a company it ensures compliance and provides guidance on managing risk. It also sets the guidelines for corporate culture and accountability. With so many things on the line good governance requires lots of effort and cooperation. We’ve compiled our top board governance tips to help you create ethical, efficient and profitable companies.
Create a Strategic Agenda for the Future
One of the most important things a well-governed board does is make a plan for the future. This sets directors up with a goal and ensures their time is devoted to the most important aspects of the company. This could involve establishing a leadership development program to nurture the next generation of board leaders.
Establish a Culture of Accountability
The best boards are known to have high standards of ethics and legal compliance. This includes a stringent code, a policy on whistleblowing as well as a policy on conflicts of interest. It’s important for boards to clearly out their policies and ensure that everyone is aware of their obligations.
Avoid Micromanaging
The most effective boards will be ones that provide oversight but don’t interfere with the day-today administration of personnel and operations. This allows management to focus on strategic issues. In addition, avoiding micromanaging allows the board to better serve their clients.