Effective board management drives value across the board and allows businesses to advance in the complexities, innovation and frequent crises. A clear and strong mission, an effective engagement strategy and effective information practices are the foundations of effective governance that we define as:
Leadership
In order to achieve effective governance, boards must select the best board members who can effectively run meetings, foster constructive discussion, and invest in development, training and feedback. They must also ensure confidence among their co-directors, CEOs, and directors and CEOs, and resolve conflicts as they arise.
The board chairperson is a key mediator as they can determine the tone of meetings and also lead the resolution process when necessary. They should also be ready to raise tough issues when the time is right knowing that these conversations will require more in-depth examination than topics that are less challenging.
The duration of the term and its limits
The term limit for chairmanships on the board must be in line with the company’s bylaws. It must be reviewed regularly to ensure that there is a diverse board and management board with different skills and backgrounds. A majority of bylaws stipulate a term of 2 or 3 years, however some don’t have an upper limit.
Retention of key talent and expertise
The best boards have key board members who can offer valuable expertise, skills, and connections to key stakeholders. They are open to new perspectives and draw on external expertise when necessary. They can also be flexible to changing priorities and circumstances.