A board of directors provides oversight of a business and its governance practices, and provides support for the strategy formulated by the management. It will also ensure that the company operates lawfully and in the best interests of shareholders and other stakeholders. The board could be made up of a mixture of outsiders and insiders, each elected to a specific period of time. The ideal board is well-rounded, diverse and has a wide spectrum of experience, skills, and backgrounds. They should embody the organization’s essential values and show dedication to the mission.

In addition to offering leadership and governance expertise, boards should be willing to accept risks and make difficult decisions. They must also display an understanding of their fiduciary responsibilities and demonstrate their ability to work with others in a team-oriented manner. They must be able to communicate the strategic vision and direction for their company and know how to create and implement a plan of action.

Boards need to be prepared to react quickly to changes in the business and societal environment. They should be proactive in the areas of the risk and opportunity, as well as financial management, and talent management.

A good way to build a strong board of directors is by creating an applicant database of qualified candidates www.managingbiz.net/2021/12/06/business-operations-management-tips-for-getting-started/ and inviting them to apply for jobs when openings become available. It’s as easy as posting a LinkedIn job advertisement or sending out an email message.