Board governance is a critical framework for businesses to be successful. It combines tried and true principles with best practices that enable boards to navigate complexity and take their business to the next level.
A set of clear guidelines sets the direction of a company, ensures compliance, and provides the necessary knowledge to manage risk. It also sets the tone of corporate ethics and accountability. Good governance is not easy, especially when there are so many things at stake. We’ve compiled the top board governance tips for you to create ethical, compliant and effective organizations.
Create a Strategic Agenda for the Future
A well-managed board can set an ambitious program for the coming years. This helps directors stay focused and ensures that their time is used in a way that’s the most valuable to the organization. This could include the creation of a leadership development program that will help develop the board’s next generation of leaders.
Create a culture of accountability
The best boards are known to have high standards of ethics and legal compliance. This includes having a strict code of conduct, a whistleblowing policy and a conflict of interests policy. It’s important for boards to clearly communicate these policies and ensure that everyone is aware of their obligations.
Avoid Micromanaging
The most effective boards will be ones that oversee operations but are not involved in the day-to-day management of personnel and operations. This allows the executive management to concentrate on strategic issues. Furthermore, not having to micromanage allows the board to better serve its stakeholders.