The board of directors oversees the company’s governance procedures and supports the management’s strategy. It also ensures that the company operates legally and in the best interests of shareholders and other stakeholders. The board could comprise an assortment of inside and outgoing members, each chosen for a particular period of time. The ideal board is well-rounded, diverse, and has a wide variety of experiences, skills and backgrounds. They should embody the company’s fundamental values and demonstrate an adherence to the mission.
Boards should also be willing to take on risks and make tough decisions. They must also demonstrate a deep understanding of their fiduciary responsibilities and demonstrate the ability to work in a collaborative manner. They should be able to articulate the strategic vision and direction of their company and know how to formulate and implement an action plan.
Boards must be prepared to quickly respond to changes in the business and societal environment. They should be proactive when it comes to opportunities and risk, managing talent and corporate finance.
A good way to build a solid board of directors is by establishing an inventory of qualified candidates and inviting them to apply for jobs when openings become available. This process is as easy as posting an advertisement for a job on LinkedIn or sending out an email announcement.