The board of directors is expected to provide guidance and oversee a range of business concerns. In order to do this effectively, they need to be active in their work. This includes executing on their decision-making obligations, completing tasks assigned to committees, and managing meetings effectively. It also involves analyzing existing practices and introducing innovative ways to improve the effectiveness of the board, efficiency, and productivity.
Meetings are held regularly and are an indication of the board’s commitment towards good governance, and consequently to the value-creation work that the company depends on them to do. Yet it’s not enough. Nell Minow, a shareholder activist, points out that « the boards of many of our most admired companies have poor or nonexistent records of attendance. » Some of the most prominent names on those boards do not show up even if they do, they’re often not prepared. »
Induction programs designed to meet the needs of directors who are new to the board aid them in gaining a quick familiarity with their companies. Continuing education helps keep board members updated on changes in the law and the industry that could affect their responsibilities. A increasing number of boards have adopted initiatives that promote openness and trust in order to make effective decisions and reach their strategic goals.
A few boards lack the necessary expertise or skills and therefore, some boards choose helpful site to delegate some of their responsibilities by inviting non-board members with specialized experiences, skills, contacts, or knowledge to serve on committees. This gives a wider variety of people to take part in the work of the board, gives professionals who are busy with an opportunity to serve an cause they believe in and develop their skills for future board roles.