Governance of boards is a crucial aspect of business and it can be challenging to create a group that works together to make decisions that are in the best interest of the company. The best advice on board governance will help you form an effective board that has a wide variety of abilities, experiences and backgrounds that work together to make choices and reflects your organization's diversity.
One of the most important tips for governance on boards is to ensure that the board is aware of its responsibilities as well as the management's role and how the two work together. This helps reduce friction and conflict, while making sure that the board is productive and able to achieve its strategic goals.
Another tip is to implement an in-line method for conducting evaluations of board members. This should include an initial assessment as well as regular assessments and a way to address any concerns about performance. This will help ensure that the right people are in the right roles and that all issues are addressed.
The best boards also recognize the importance of having have a balance of new members who bring new ideas, as well as experienced directors who have expertise in specific areas. They accomplish this by establishing an ongoing schedule for board renewal and rotation.
Finally, a well-run board will have a clear strategy to select the next CEO. This is a critical task that can decide the fate of a company. The most effective boards prepare for this by keeping open communication with the CEO, working on internal candidates, and spotting external candidates.
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