A well-designed board management strategy drives value across the board, allowing companies to thrive in times of change or complexity, as well as crises. Effective governance is supported by a clear mission statement, clear engagement models, and effective information practices. We define this as:
To ensure effective governance, boards need to select the right board leaders who conduct meetings efficiently, foster constructive discussion, and invest in training, development and feedback. These leaders must also maintain confidence among their co-directors, CEOs, and directors and CEOs, and resolve conflicts as they arise.
The chairperson of the board is a crucial mediator as they can determine the tone of meetings and lead the resolution process when necessary. They should be ready to address difficult issues whenever the opportunity presents itself. This is because these discussions will require more detailed scrutiny than those involving less difficult topics.
The limit on the term of chairman positions on the board should be in line with the bylaws of the company. It is recommended to review it regularly to ensure that there is a diverse board with different qualifications and backgrounds. Certain bylaws have a time limit of two or three years, while others do not.
The best boards retain key board members who can provide valuable skills, experience and connections to important stakeholders. They are open to new perspectives and draw upon external expertise when necessary. They can also adapt quickly to changing priorities and conditions.