A board of directors provides oversight of a business and its governance practices, and offers support for the plan of action proposed by the management. It also ensures the company is operating legally and in the best interests of shareholders and other stakeholders. The board could be made consisting of outsiders as well as insiders, each of them elected for a specific period of time. The ideal board is diverse, well-rounded and has a wide variety of experiences, skills, and backgrounds. They will embody an organization’s most important values and demonstrate a commitment to the purpose.
Boards must also be prepared to take on risks and make difficult decisions. They must also display an understanding of their fiduciary obligations and demonstrate the ability to work in a collaborative manner. They must be able to articulate the strategic direction and vision of their company and be able to formulate and implement a plan.
Boards need to be prepared to quickly react to changes in the business and social situations. They should be proactive when it comes to opportunities and risk, talent management and corporate finance.
To establish a strong board, it is an ideal idea to build an applicant database and invite candidates to apply as soon when vacancies become available. This can be as simple as posting a job ad on LinkedIn or sending out an email announcement.