Board Management Principles

A board’s job is to provide guidance and oversight to the executive management team, ensuring that the company’s policies are in place and that all fiduciary responsibilities are fulfilled. Some boards grant too much power to executive leadership. They don’t. The media is full of stories about business catastrophes caused by incompetent or corrupt management teams.

To avoid the occurrence of such catastrophes It is essential to ensure that your board is comprised of many perspectives and skills. It should also work effectively as a team. This means establishing certain board management principles that include welcoming diversity into your board and taking on leadership roles, fostering an agile structure (e.g., forming committees to address the new risks) and engaging in continuous assessment of both the board as a whole and individuals.

Another important principle of management for boards is to not get too involved in operational issues, especially when it comes to the day-to-day activities of your business. A board’s main job is to define the long-term goals of your business and its place in society.

This may appear to be something that is easy to implement however, many companies are struggling to implement this concept. Some board members, for example begin meetings directly with management without the CEO’s knowledge or immediately jump to conclusions to be helpful. This could put the CEO in a bind. The CEO should work with the chairman of the board and other directors to solve the issue and restore trust.

https://contactboardroom.com/data-security-reinvented-exploring-virtual-data-rooms/