A board of directors is responsible for providing supervision of a business and its policies regarding governance, and offers support for the strategies proposed by the management. It also ensures that the company operates legally and in the best interest of shareholders and other stakeholders. The board can be made from a mix of outsiders and insiders, each elected to a specific period of time. The ideal board is diverse, well-rounded and has a wide variety of experiences, skills, and backgrounds. They should reflect the organization’s core values and show that they are committed to its mission.
Boards must also be willing to take risks and make difficult choices. They should also demonstrate an understanding of and ability to collaborate in a team-oriented manner. They should be able communicate the strategic direction and vision of their organization and know how to create and execute an action plan.
Boards should be prepared for rapid response to changes in the societal and business environment. They must be proactive when it comes to opportunities and risk, the management of talent and corporate finance.
To create a solid board, it is recommended to build a database of qualified candidates and invite candidates to apply as soon when vacancies become available. It’s as easy as posting a LinkedIn job advertisement or sending out an email message.