A board of directors provides oversight of a company as well as its policies regarding governance, and offers support for the strategy formulated by management. It also ensures that the company operates legally and in the best interest of shareholders and other stakeholders. The board can be composed from a mix of outsiders and insiders each of them elected for a specific term. The ideal board is well-rounded, diverse and has a broad spectrum of experience, skills, and backgrounds. They should reflect the company’s core value and demonstrate an adherence to the mission.
Boards should also be willing to take risks and make difficult choices. They should also show an understanding of their fiduciary responsibility and demonstrate the ability to work in a manner that is team-oriented. They should be able to articulate the strategic vision and direction of their company and know how to formulate and implement the plan of action.
Boards must be prepared to respond quickly to changes in the their website business and social contexts. They must be proactive when it comes to potential and risk, financial management, and talent management.
A great way to establish a solid board of directors is to create an inventory of qualified candidates and inviting them to apply for jobs immediately when openings are created. This can be as easy as posting an LinkedIn job advertisement or sending an email announcement.