Board Management Principles

A board’s read at contactboardroom.com job is to provide guidance and oversight to the executive management team, and to ensure that the company’s policies are in place and that all fiduciary obligations are met. While some boards entrust too much power to their executive management but the majority of boards do not go far enough. Sadly, the media abounds with stories of corporate disasters that are caused by poor or incompetent management teams.

To avoid these disasters it is crucial to ensure that your board has a wide range of perspectives and skills. It should also work together as a unit. This is why you should establish certain board management principles including embracing diversity when building your board and assuming leadership roles, fostering an agile structure (e.g. setting up committees to deal with new dangers) and ensuring ongoing review of the board itself and individual members.

Another key principle for a board of management is to not be too involved in the day-to-day activities of your business. The primary role of a board is to establish the long-term vision of your company and its position in the society.

This may seem like something that is easy to implement however, many companies are struggling to implement this idea. For example the board members may begin meeting with management directly without consulting the CEO, or jump to conclusions in the hope of being helpful. This can put the chief executive in a precarious position. The CEO must work with the chairman of the board and other directors in order to resolve the issue and regain trust.