The Key to Perfect Board Governance
The secret to a perfect board governance is not just setting up winning structures and processes but also exhibiting appropriate behaviours in building trust, fostering an ethical culture and interacting with shareholders. When boards are able to accomplish these tasks effectively, they can add the most value to healthcare companies. They can ensure they stay on the right track, and also move them forward, for the benefit of all.
Effective boards have a clear, solid structure that clearly defines their responsibilities and functions. This includes defining the responsibilities of the chairman, chief executive officer and directors individually as well as their committees. Structures which are clearly defined allow directors to focus on their specialties and to work as members of a team.
The board should develop an elaborate plan for the governance of the organization, including identifying the most important issues, establishing goals for the organization’s strategic direction and establishing risk management strategies. It also needs to ensure that it has the appropriate capabilities and understanding to fulfill its duties, for example by ensuring there is a mix of relevant skills in the board, and making sure that it has the required experience in a particular field.
A strong and dependable board of directors must have a high level of competence as well as experience and skills that will enable it to be successful in managing risks of a major nature and contributing to the success of the company. It will be able to meet the diverse expectations and demands of stakeholders whether employees, customers, or investors. This will require a strong strategy and a clear understanding of the company’s objectives and values.
