A well-designed board management strategy can create value across the board, allowing businesses to thrive in times of innovation, complexity, and crises. A strong mission, clear engagement strategy and effective information practices anchor the pillars of effective governance that we define as:
Leadership
In order to achieve effective governance, boards need to select the best board members who can effectively run meetings and encourage constructive discussion and invest in education, development and feedback. These leaders must also keep the trust of their co-directors, CEOs, and directors and CEOs, and resolve conflicts as they arise.
The chairperson of the board is a key mediator as they establish the tone for meetings and also lead the resolution process when necessary https://boardroomevent.com/5-best-practices-for-effective-board-management/. They should also be prepared to bring up difficult issues when the time is right knowing that these conversations will require more thorough examination than topics that are less challenging.
The term limit and the tenure
The time limit for board chairman posts should be designed to be in line with the company’s bylaws and should be reviewed regularly to ensure that the board is made up of a diverse group of people with diverse abilities and backgrounds. Many bylaws specify a term of 2 or 3 years, but others don’t have any limit.
Retention of key talent
The best boards have board members who are able to offer valuable skills, experience and connections to the most important stakeholders. They are open to new perspectives and draw upon external expertise when necessary. They also can be flexible to changing priorities and circumstances.
