A board of directors is responsible for providing supervision of a business and its governance practices, and provides support for the strategy formulated by the management. It will also ensure that the company operates lawfully and in the best interest of shareholders and other stakeholders. The board could be made consisting of outsiders as well as insiders, each of them elected for a specific term. The ideal board should be multi-faceted and diverse in abilities, experience, and background. They will embody the organization’s core values and show an adherence to the mission.
In addition to providing leadership and expertise in governance boards must be willing to embrace risks and make difficult decisions. They should also demonstrate an understanding of and ability to collaborate in a team-oriented manner. They should be able to communicate the strategic vision and direction for their organization and understand how to develop and execute a plan of action.
Boards need to be prepared to quickly respond to changes in the societal and business environment. They should be proactive when it comes to potential and risk, talent management and corporate finance.
To create a strong board, it is recommended to build an applicant database and invite applicants to apply as soon as openings become available. This process can be as simple as posting a job advertisement on LinkedIn or sending out an email announcement.