The Importance of a Strong Board of Directors

A board of directors is legally responsible for high-level decisions, including the hiring and firing of the chief executive officer, overseeing strategic direction, and making sure the company’s goals are met. The board of directors is comprised of respected experts and former executives chosen from the community. They are accountable for establishing the corporate governance.

A solid board is one that has a clear mission and operates with openness to communication and accepts a variety of viewpoints. It is also accountable www.boardnearme.com/best-online-fundraising-platform-for-your-nonprofit/ to its shareholders and other stakeholders. It also includes independent directors who are not entangled in conflicts of interest and who have an outlook for the long-term company’s future. An official orientation process as well as establishing relationships with other members, and agreeing to meeting promptly are crucial.

A good board member is not only business-savvy, but also intellectually curious. They can ask insightful questions to management and to other members that will challenge their thinking and lead to the most effective decisions. A niche expertise like capital-raising or sales experience can be a great asset.

Boards are increasingly being asked to take on more responsibilities like strategic planning and managing resilience and risk. They also have to manage diversity and inclusion and technological advancements and digitalization. This means that they have to become digitally literate and have an increasing role in the hiring process and succession planning for the CEO and other senior leaders. According to McKinsey COVID-19, the epidemic has taught boards to be more proactive when it comes to addressing crisis and preparing for uncertainty.