Board of directors are expected to provide guidance and oversight over a wide range of business issues. To accomplish this, they need to be engaged in productive work. This includes fulfilling their decision-making obligations, completing tasks assigned to committees, and managing meetings effectively. It also involves evaluating the traditional practices and introducing new ones to increase efficiency, productivity, and board effectiveness.
Regular attendance at meetings is a good indicator of the board’s commitment towards good governance, and consequently to the value creation work that the company relies on them to accomplish. It’s not enough. Nell Minow, a shareholder activist, points out that “the boards of a lot of our most revered corporations have weak or even nonexistent attendance records.” Some of the most prominent names on those boards barely show up in the first place, and when they do, they are usually not prepared.”
Induction programs that are tailored to the needs of directors who are new to the board assist them in becoming familiar with their companies. Continuing education helps keep board members aware of changes in the law and business that could impact their responsibilities. A increasing number of boards have adopted initiatives to foster openness and trust in order to make sound decisions and reach their strategic goals.
Few boards have all the necessary skills or expertise Some boards opt to delegate part of their responsibilities by inviting non-board members with specific knowledge, experience or expertise to serve on committees. This enables a wider array of people to take part in the activities of the board. It and gives busy professionals the opportunity to support their cause and develops talent for future board post.