A board of directors is responsible for providing oversight of a company and its governance practices, and provides support for the strategies proposed by the management. It will also ensure that the company operates legally and in the best interest of shareholders and other stakeholders. The board can be made consisting of outsiders and insiders, each elected to a specific period of time. The ideal board will be multi-faceted and diverse in terms of capabilities, experience, as well as background. They will reflect the organization’s fundamental values and demonstrate a commitment to its mission.
Boards should also be able to take risks and make tough decisions. They must also show an understanding of the business and the ability to collaborate in a team-oriented manner. They should be able articulate the strategic vision and direction of their organization and be able to formulate and implement the plan of action.
Boards need to be ready to quickly react to changes in the business and social contexts. They should be proactive in their approach to managing risk and opportunities as well as talent management, corporate finance and succession planning for CEOs, organizational culture, community brand awareness, and outreach, as well fundraising.
To create a strong board, it’s best to establish an inventory of qualified candidates and invite them to apply as quickly when vacancies become available. This process can be as simple as posting a job announcement on LinkedIn or distributing an email announcement.