A board of directors is responsible for the company’s governance procedures and helps to implement the company’s plan of action. They also ensure that the company is operating legally and in the best interest of shareholders and other stakeholders. The board can be composed from a mix of insiders and outsiders, each of them elected for a specific term. The ideal board is well-rounded, diverse, and has a wide spectrum of experience, skills, and backgrounds. They should embody the company’s fundamental values and demonstrate an adherence to the mission.
In addition to providing guidance and leadership boards must be willing to accept risks and make difficult decisions. They must also demonstrate a deep knowledge of their fiduciary duties and demonstrate their ability to work with others in a team-oriented manner. They should be able articulate the strategic vision and direction of their organization, and comprehend how to create and implement a plan of action.
Boards need to be prepared to quickly respond to changes in the business and societal environment. They should be proactive in the areas of opportunities and risk, managing talent and corporate finance.
One way to create a strong board of directors is to create an applicant database of qualified candidates and inviting them to apply for jobs as soon as openings arise. This can be as easy as posting a LinkedIn job ad or sending an email announcement.
