A board of directors oversees the governance of a company and supports the management’s strategies. They also ensure that the company is operating in compliance with the law and in the best interest of shareholders and other stakeholders. The board could be made by a mix of outsiders and insiders, each elected to a specific term. The ideal board is balanced and diverse in skills, experience, and background. They should reflect the organization’s core values and show an adherence to the mission.
Boards should also be able to take on risks and make difficult decisions. They should also demonstrate an understanding of and ability to work as a team. They must be able to communicate the vision and strategic direction of their organization, and understand how to create and execute the plan.
Boards must be ready to react quickly to changes in the business and societal environment. They should be proactive when it comes to opportunities and risk, the management of talent and corporate finance.
A good way to build a solid board of directors is by establishing an inventory of qualified candidates and inviting them to apply for jobs as soon as openings arise. This is as simple as posting a LinkedIn job ad or sending an email with a message.