A board of directors oversees a company’s governance practices and supports the management’s strategy. They also ensure that the company is operating legally and in the best interests of shareholders and other stakeholders. The board can be composed up of a mixture of outsiders and insiders, each elected for a specific period of time. The ideal board will be well-rounded and diverse in terms of skills, experience, and background. They should embody the company’s fundamental values and demonstrate an adherence to the mission.
In addition to providing guidance and leadership, boards should be willing to embrace risks and make difficult decisions. They must also show an understanding of the business and the ability to work in a team-oriented way. They should be able communicate the vision and strategic direction of their organization and know how to develop and implement a plan.
Boards should be prepared to react quickly to changes in business and social contexts. They must be proactive in the areas of the risk and opportunity, as well as managing talent and corporate finance.
To create a solid board, it’s best to establish a database of candidates who are qualified and invite candidates to apply as soon when vacancies become available. This process is as easy as posting a job advertisement on LinkedIn or sending out an email announcement.