Corporate boards are resource responsible for the top-level activities of an organization. It could be a business or a charitable organization. They are not involved in the operations of a company, as the executive level is in charge. They are fiduciaries. This means that they put the needs and interests of their company above their own.
They serve as strategic advisors to the CEO, offering support and challenging him or her in a constructive manner. They assist the CEO in finding ways to meet the company’s strategic goals, and they hold the CEO accountable for achieving those goals.
A well-managed board is attentive to culture and talent and ensures that the CEO has the tools she or needs to implement the plan. A strategy will only be worth it if the management and employees are able to implement it. The company’s culture and talent are inextricably linked to their capacity to execute its plan.
Additionally, a properly managed board is up to date with the most recent developments in the market and industry of the company. This requires a sound information architecture that has efficient methods for collecting data, disseminating information and communicating it, including reviews of social media as well as media news articles and more.
A well-managed Board is aware its own strengths and weaknesses and continually strives to improve the effectiveness of the board. This could mean being afraid to challenge established practices like formal operating procedures or the committee structure that has been in place for a long time. It may even involve bringing on new directors with unique skills or experience, for instance having extensive market knowledge in international markets or experience in managing an enterprise that is 2x or 3x the size of the board’s company.