News Release
Board of Directors Can Keep Company Focused
September 8, 2009
Many companies and organizations function with a board of directors, whose role is to guide the organization by establishing broad policies and objectives.
Effective board governance helps put measures in place that will ensure smooth functioning and control. Such measures could include transparency of information, larger decisions surrounding the direction of the organization, board member liability, roles and responsibilities of the board, recruitment and orientation of new board members, and overall board performance.
Board governance, in its purest form, is the connection between the organization's goals and the corporate efforts and responsibilities to reach those goals.
Being part of a board can be an enriching and engaging experience, whether with a for-profit or not-for-profit group. However, there's a level of responsibility and commitment required in order to fully benefit and make the most out of the experience.
All members of a board should have a clear understanding of the organization's goals and the defined roles and responsibilities. For new members, developing an effective orientation package is crucial for them to become a productive board member from the start.
The role of the board is primarily to govern and not manage. Long-term planning, strategy development and establishment of values are key initiatives that should be tackled. The board governance process is in place to provide leadership and performance assessment.
A key component of governance is effective board performance evaluation. Annual assessment of the board's performance creates an opportunity to evaluate the overall effectiveness when facing challenges or achieving goals. Results that stem from this exercise are always beneficial and drive improved board governance procedures.
Remember, boards are only as good as the people who sit on them, which is why leadership succession is so important. Board governance can be beneficial at all levels and can strengthen the leadership of the organization today and for the future.
For more information concerning board governance or business counseling, contact Enterprise Fredericton at 444-4686 or info@ent-fredericton.ca.
Lucas Roze
Your Business