The board of directors oversees the company’s governance practices and helps to implement the company’s plan of action. It will also ensure that the company operates lawfully and in the best interests of shareholders and other stakeholders. The board can include a mix of inside and outside members, all chosen for a particular period of time. The ideal board will be balanced and diverse in terms of skills, experience, and background. They will embody an organization’s core value and demonstrate a commitment to the organization’s mission.
In addition to offering leadership and governance expertise Boards should also be prepared to embrace risks and make difficult decisions. They must also show an understanding of the business and the ability to work as a team. They must be able to communicate the strategic vision and direction for their organization and be able to formulate and implement the plan of action.
Boards should be prepared for rapid response to changes in the business and societal environment. They must be proactive in the areas of the risk and opportunity, as well as financial management, and talent management.
To establish a strong board, it is a good idea to create a database of qualified candidates and invite them to apply as quickly as openings become available. This can be as simple as posting an advertisement for a job on LinkedIn or sending out an email announcement.