By DP30 david@thehotbuttonl.com
5 Pillars of Effective Board Management
A strong board management strategy drives value across the board, allowing businesses to thrive in times of innovation, complexity, and crises. A strong mission, clear engagement model , and efficient information practices are the foundations of effective governance that we define as:
Leadership
In order to achieve effective governance, boards need to select the right board leaders who can effectively run meetings, foster constructive discussion, and invest in education, development and feedback. These leaders must also keep confidence among their fellow directors, CEOs, and resolve conflicts when they arise.
The chairperson of the board is an important mediator, as they can establish the tone for meetings and guide the resolution process if needed. They should also be ready to raise tough issues when the right time comes knowing that these conversations will require greater examination than topics that are less challenging.
The duration of the term and its limits
The term limit for board chairman positions should be designed to be consistent with the company’s bylaws, and should be reviewed on a regular basis to ensure that the board is made up of a diverse group of people with a variety of abilities and backgrounds. Many bylaws specify a term of two or three years, however some don’t have any limit.
Retention of key talent
The most successful boards keep key board members who can provide valuable skills, experience and connections to key stakeholders. They are open to new perspectives and draw upon external expertise when necessary. They also adapt quickly to changing priorities and changing conditions.