www.boardnearme.com/communicate-effectively-to-create-better-board-relationships/
A board of directors is legally responsible for high-level decisions, including the hiring and firing of the chief executive officer, overseeing the strategic direction of the business, and ensuring that the company meets its goals. This group often consists of former and current executives expert and respected individuals who are selected from the general public (called outside directors), and it is accountable for establishing corporate governance standards.
A solid board has a clear and defined mission, operates with open communication and respects diverse viewpoints. It is also accountable to its shareholders and other stakeholders. It also includes directors who are independent who are not entangled in conflicts of interest and who have an eye on the long-term for the company’s success. The importance of a formal orientation, establishing relationships with members, and arranging meetings on time is vital.
A good board member is not only smart in business, but also curious. They are able to ask constructive questions to management and to other members that challenge their thinking and help them make the best decisions. Being a specialist like capital-raising or sales experience is also an advantage.
Boards are increasingly being asked to take on additional responsibilities such as strategic planning and managing resilience and risk. They must also deal with diversity and inclusion, as well as digitalization and technology. As a result, they are required to be technologically adept and play an increased role in hiring and succession planning for the CEO and other senior leaders. The COVID-19 virus has taught boards to be more proactive when it comes to tackling crises and preparing for uncertainty, according to McKinsey.
