A board of director has legal responsibility for making high-level decisions. This includes appointing and firing the CEO, overseeing the strategic direction of the company and ensuring that the company meets its objectives. This group is made up of experts, respected individuals and former executives who are chosen from the community. They are responsible for setting the corporate governance.
A strong board has a clear mission and operates with open communications, respect for diverse viewpoints and a sense of accountability to shareholders and stakeholders. It also has independent directors who are free of conflicts of interest and who have an eye on the long-term for the company’s growth. An official orientation process as well as establishing relationships with other members, and agreeing to meet at the right time are essential.
In addition to business acumen, a good www.boardnearme.com/communicate-effectively-to-create-better-board-relationships/ board member has an intellectual curiosity and is competent to ask management and other members constructive questions that challenge group thinking and help produce the best decision. A board member’s expertise can be an asset.
Boards are increasingly assuming additional duties, including strategic planning as well as risk and resilience management, diversity and inclusion, as well as technology and digitization. As a result, they have to become technologically proficient and play an increased role in the hiring process and succession planning for the CEO and other senior leaders. The COVID-19 pandemic has taught boards to be more proactive in dealing with emergencies and preparing for the possibility of uncertainty, according to McKinsey.