Governance of boards is a vital framework for businesses to be successful. It is a combination of tried-and-true principles and best practices that allow boards to manage complexity and take their organization to the next level.
A clear set of guidelines establishes the direction of a business, oversees compliance and provides experts to manage risk. It sets the tone for corporate culture and accountability. With so many things on the table, good governance requires a lot of effort and collaboration. We’ve compiled our top tips for governance on boards to help you build ethical, compliant and successful companies.
Set out a strategy for the future
One of the most important things a well-run board does is set an ambitious agenda for the future. This gives directors a focus and ensures that their time is spent in a way that’s most profitable for the organization. This could involve developing a leadership program to help the board’s next generation of leaders.
Establish a Culture of Accountability
The best boards are known for having high standards of ethical and legal compliance. This includes a robust code of conduct, a policy on whistleblowing as well as a policy on conflict of interests. Boards should be clear about their policies and make sure that all members are aware of their responsibilities.
Avoid Micromanaging
The most effective boards will be those that provide oversight but don’t interfere with the day-today administration of staff and operations. This allows executive management to concentrate on strategic issues. The board can better serve its stakeholders by eliminating micromanagement.