A board of directors oversees the governance of a company and supports the management’s strategies. It also ensures the company is operating legally and in the best interests of shareholders and other stakeholders. The board could be made consisting of outsiders and insiders, each of whom is elected to a particular term. The ideal board will be broad and diverse in expertise, experience, and background. They will represent the company’s essential values and show a commitment to the purpose.
In addition to providing guidance and leadership Boards should also be prepared to embrace risks and make difficult decisions. They must also show an understanding of and ability to work in a team-oriented way. They must be able to communicate the vision and strategic direction of their company, and understand how to develop and implement the plan.
Boards must be ready to react quickly to changes in the social and business environment. They must be proactive in their approach to managing risk and opportunity, talent management, corporate finance, CEO succession planning, organizational culture and brand awareness for the community, and outreach, as well fundraising.
To create a strong board, it is an ideal idea to build a database of qualified candidates and invite applicants to apply as soon as job openings arise. This is as simple as posting a LinkedIn job ad or sending an email announcement.