Board governance is the key structure that helps set corporations up for success. It combines tried-and-true principles with best practices that enable boards to deal with complexity and take their organizations to the next level.
A set of clear guidelines defines the direction of a business ensures compliance and provides guidance on managing risk. It also sets the foundation for corporate culture and accountability. With so much to be done the need for good governance is an enormous amount of work and collaboration. That’s why we’ve put together our top tips for governance on boards to help you build ethical, compliant and successful organizations.
Set out a strategy for the future
One of the most important things boards that are well-run create a comprehensive plan for the future. It gives directors a purpose and ensures that their time is focused on the most valuable aspects for the company. This could mean the creation of a leadership development program that will help develop the board’s next generation of leaders.
Establish a Culture of Accountability
Great boards are known for having high standards of ethical and legal compliance. This includes a strong code of conduct, a procedure for whistleblowing as well as a policy on conflict of interests. It is crucial for boards to clearly explain these policies and ensure that all members are aware of their responsibilities.
Avoid Micromanaging
The most efficient boards are those that have oversight, but do not engage in the day-to-day administration of staff and operations. This allows the executive management to focus on strategic issues. The board can better serve its stakeholders by eliminating micromanagement.
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