The perfect board governance is a difficult idea to attain. It is a goal that boards must strive to achieve. They can achieve it if the boards understand what good board governance looks like.
To accomplish this, boards must be structured in a way that is appropriate, well-chosen, as well as directed towards the future. They must be able balance the desires and needs of the company as well as those of the stakeholders. They must also be able to handle new regulatory pressures, when they occur.
In the end, the success of a non-profit organization is contingent on its board’s ability face these challenges and ensure that it is positioned to be sustainable in the future. A strong board can managing conflict between board and executive director assist its trustees in their responsibilities and help the community by ensuring that the programs of an organization are safe or on track to accreditation.
The most important aspect of a structure is the creation of a suitable agenda and schedule for the board. It should be simple for directors to decide which issues require their attention and the ones that are delegated. It should also define what time the board must be notified or consulted on issues that don’t require full board decision.
The board must also be able to recognize their own shortcomings and areas of improvement. This is where an annual review can be useful in allowing the board to gauge its effectiveness and compare it to peers’.