A board of directors has legal responsibility for making high-level decisions. This includes deciding to hire and dismiss the CEO, directing the strategic direction of the business and ensuring that the company achieves its objectives. The board of directors is comprised of experts, respected individuals and former executives who are chosen from the community. They are accountable for establishing corporate governance.
A solid board is one that is clear on its mission and operates with open communication and accepts a variety of viewpoints. It is https://boardnearme.com/communicate-effectively-to-create-better-board-relationships/ also accountable to its shareholders and other stakeholders. It also has independent directors who are free of conflicts of interest and have a long-term vision for the company’s growth. The importance of formal orientation, establishing relationships with members, and having meetings on time is paramount.
A good board member is not just skilled in business, but also curious. They are able to ask thoughtful questions to management and to other members which will challenge their thinking and lead to the most effective decisions. A board member’s specific experience can be a great asset.
Boards are increasingly being asked to take on more responsibilities like strategic planning, managing resilience and risk. They also have to manage diversity and inclusion and technological advancements and digitalization. They must be more technologically literate, and have a greater part to play in the hiring process of CEOs and other senior leaders. The COVID-19 epidemic has taught boards to be more proactive when it comes to tackling emergencies and preparing for the possibility of uncertainty according to McKinsey.
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