A board of directors provides oversight of a company and its policies regarding governance, and offers support for the strategies proposed by the management. It also ensures that the business is operating legally and in the best interests of shareholders and other stakeholders. The board may comprise an assortment of insider and outside members, with each chosen for a particular period of time. The ideal board is well-rounded, diverse, and has a wide range of skills, experiences and backgrounds. They will embody the organization’s fundamental values and demonstrate an adherence to the mission.
In addition to offering leadership and governance expertise Boards should also be prepared to take risks and take difficult decisions. They must also display a deep understanding of their fiduciary obligations and demonstrate their ability to work in a manner that is team-oriented. They should be able communicate the strategic direction and vision of their organization, and understand how to create and execute plans.
Boards should be prepared to respond quickly to changes in the business and social situations. They must be proactive in the areas of the risk and opportunity, as well as the management of talent and corporate finance.
To build a strong board, it is a good idea to create a database of candidates who are qualified and invite them to apply as quickly as job openings arise. This is as simple as posting a LinkedIn job ad or sending an email announcement.