Effective board management drives value across the board and allows companies to progress in the face of challenges, innovation, and regular crises. A clear mission, a solid engagement model and effective information practices are the foundations of effective governance which we define as:
In order to achieve effective governance, boards must choose the best board leaders who conduct meetings efficiently, foster constructive discussion, and invest in training, development and feedback. These leaders must also maintain confidence among their fellow directors, CEOs https://boardroomevent.com/finding-the-balance-between-board-and-management/ and other board members, and settle conflicts when they arise.
As mediator, the chairperson of the board can set the tone and guide the resolution process. They should be prepared to discuss difficult issues when the opportunity presents itself. This is because these discussions will require more thorough examination than those that deal with more straightforward topics.
Tenure and term limits
The duration of the chairmanship positions should be designed to be in line with the company’s bylaws, and should be reviewed regularly to ensure that the board is comprised of a diverse set of individuals with diverse qualifications and backgrounds. Most bylaws provide for a period of two or three years, but others don’t have a limit.
Retention of key talent
The best boards retain key board members who provide valuable expertise, knowledge, and connections to key stakeholders. They are open to bringing fresh perspectives and leveraging expertise from outside whenever needed. They are able to adapt quickly to changing conditions and priorities.