A board of directors provides oversight of a business and its governance practices, and offers support for the strategies proposed by management. It also ensures that the company operates legally and in the best interest of shareholders and other stakeholders. The board can include members from inside and outgoing members, each elected for a specified period of time. The ideal board is multi-faceted and diverse in terms of abilities, experience, and background. They should reflect the organization’s fundamental values and demonstrate a commitment to its mission.
Boards must also be willing to take on risks and make difficult decisions. They should also demonstrate 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 be able to formulate and implement an action plan.
Boards need to be ready to respond quickly to changes in business and social environments. They should be proactive in their approach to risk and opportunity management as well as talent management, corporate finance and succession planning for CEOs, organizational culture branding, community awareness and outreach, as well as fundraising.
To establish a strong board, it is best to establish an inventory of qualified candidates and invite candidates to apply as soon as openings become available. It’s as simple as posting a LinkedIn job advertisement or sending an email message.