The role of a board is to provide direction and oversight of the executive management team, ensuring that company policies are adhered to and that all fiduciary duties are fulfilled. While some boards give too much power to their executive leadership, most do not go far enough. Unfortunately, the media is overflowing with tales of business disasters that are the result of incompetent or corrupt management teams.

One of the most effective ways to prevent such catastrophes is to ensure that your board is comprised of a wide range of skills and perspectives and works well together as a unit. This requires establishing specific management guidelines for your board, such as accepting diversity when creating your board and assuming leadership roles, fostering agile structure (e.g., forming committees to deal with new dangers) and conducting a regular review of the board and its individuals.

Another board management principle is to avoid getting too involved in operational issues, particularly when it comes to the day-to-day operations of your company. This is because a major portion of the role of a company’s board is to determine the long-term direction for your business and how it will fit into the world.

It may seem like an obvious concept, but many companies struggle to implement this idea. For instance the board members may begin having meetings directly with management without consulting the CEO or take a leap of faith in an effort to be helpful. This can put the CEO in a precarious spot. The CEO must collaborate with the chairman of the board and other directors to resolve the issue and re-establish trust.

https://www.contactboardroom.com/boardmaps-and-boardpaq-board-platforms-key-characteristics/