A strong board management strategy can create value across the board, allowing businesses to thrive in times of change, complexity, and crises. A clear mission, a solid engagement model , and efficient information practices anchor the pillars of effective governance that we define as:
Leadership
Boards must select the appropriate directors to lead meetings, foster constructive discussions, and invest time, training, and development in feedback. This will ensure efficient governance. These leaders must also maintain the trust of their fellow directors, CEOs and CEOs, and resolve conflicts as they arise.
The chairperson of the board is an important mediator, because they determine the tone of meetings and lead the resolution process when needed. They must also be prepared to raise tough issues when the right time comes knowing that these conversations will require more thorough scrutiny than less difficult topics.
The term limit and the tenure
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 made up of a diverse set of individuals with different abilities and backgrounds. A majority of bylaws stipulate a term of 2 or 3 years, while others do not have an upper limit.
Retention of key talent
The most successful boards keep key board members who can provide valuable expertise, knowledge, and connections to key stakeholders. They are open to bringing fresh perspectives and leveraging expertise from outside when needed, and they are able to adapt quickly to changing circumstances and priorities.
