A board of directors is legally accountable for the most important decisions, which include the hiring and firing of the chief executive officer, directing strategic direction, and ensuring the company is able to meet its objectives. The board is comprised of respected experts and former executives boardnearme.com chosen from the community. They are responsible for setting the corporate governance.
A well-functioning board has a clear purpose and operates with open communications and respect for the diverse views of its members and accountability to shareholders and stakeholders. It also includes independent board members that are free from conflicts of interest and have an opportune view of the company’s future. An orientation process that is formal and establishing relationships with other members, and committing to meeting at the right time are essential.
A good board member is not just business-savvy, but also intellectually curious. They can ask insightful questions to the management and to other board members that challenge their thinking and lead to the most effective decisions. A board member’s expertise can be an asset.
Boards are increasingly taking on additional tasks, such as strategic planning as well as risk and resilience management as well as diversity and inclusion and technology and digitalization. As a result, they need to be more digitally literate and have an increased role in the hiring process and succession planning for the CEO and other senior leaders. According to McKinsey COVID-19, the epidemic taught boards to be more proactive when addressing crises and planning for uncertainty.
