Achieving Perfect Board Governance
The perfect board governance is a difficult idea to attain. But it is an objective that boards must strive for and they can reach if they recognize what good governance looks like and if they’re built following a meticulous blueprint (what Nadler calls “board building”) and if they have the proper behavior.
To accomplish this boards must be designed appropriately, well-chosen, and directed towards the future. They should be able to balance the needs and wants of the business as well as the needs of its stakeholders. They must be able to deal with any new regulatory pressures that they arise.
In the end, the viability of a non-profit institution is contingent on the board’s ability to face these challenges and ensure it is well-positioned for a long-term sustainable future. It could be as simple as maintaining the health of an organization’s programs, or keeping it on track for accreditation, a strong board can assist its members in fulfilling their duties as trustees, and contribute to the community.
An essential structural element is the creation of a suitable board agenda and schedule. It must be clear enough for directors to know the issues that need their attention, and which ones can be delegated to committees or management. It should also specify when the board must be consulted or informed about issues that do not require a decision by the entire board.
Additionally, boards need to be able to identify their own weaknesses and areas of improvement. An annual evaluation is useful as it allows the board to compare its performance with that of its peers.
