Board governance is an essential structure for companies to succeed. It combines tried and trusted principles with the best practices to assist boards navigate the maze of complexity and propel the organization to the next level.
A clear set of rules determines the direction of a company, oversees compliance and provides the necessary expertise to manage risk. It also sets the tone of corporate culture and accountability. With so much on the line good governance requires an enormous amount of work and collaboration. That’s why we’ve put together our top governance tips for boards to help you create ethical, reputable and successful organisations.
Set out a strategy for the future
A well-managed board can set an ambitious agenda for future. It gives directors a purpose and ensures their time is spent on the most valuable things for the business. This could involve establishing a leadership development program to nurture the next generation of board leaders.
Establish a culture of accountability
Great boards are known for their rigorous standards for ethical and legal compliance. This includes having a strong code of conduct along with a whistleblowing policy as well as an anti-conflict of interest policy. Boards must clearly communicate their policies and ensure that all members understand their responsibilities.
Avoid Micromanaging
The most effective boards are ones that oversee operations but do not get involved in the day-to-day management of staff and operations. This allows executive management to be more focused on strategic issues. The board can better serve its constituents by eliminating micromanagement.