A board of directors bears legal authority to make high-level decisions. This includes hiring and firing the CEO, overseeing the strategic direction of the business and ensuring that the company is meeting its objectives. The board of directors is comprised of experts, respected people and former executives who are selected from the community. They are responsible for establishing the corporate governance.
A strong board has a clear purpose and operates with open communication and respect for different viewpoints and accountability to shareholders and other stakeholders. It also includes directors who are independent who are free of conflicts of interest and have a long-term view for the company's success. Having a formal orientation process and building relationships with other members, and committing to meeting at the right time are essential.
A good board member is not just skilled in business, but also curious. They boardnearme.com can ask insightful questions to the management as well as to other members that will challenge their thinking and help them make the right decisions. Experience in a niche like sales or capital-raising expertise can be a great asset.
Boards are increasingly taking on additional duties, including strategic planning, risk and resilience management as well as diversity and inclusion as well as technology and digitization. They need to be more technologically proficient, and have a greater part to play in the hiring of CEOs and other senior leaders. The COVID-19 pandemic has taught boards to be more proactive when it comes to tackling emergencies and preparing for the possibility of uncertainty according to McKinsey.
