The role of a board is to provide guidance and oversight to the executive management team, ensuring that the company’s policies are followed and that all fiduciary responsibilities are met. While some boards give too much authority to their executive leaders however, the majority do not take their responsibilities to the fullest extent. Sadly, the media abounds with stories of corporate disasters that are caused by incompetent or corrupt management teams.

To prevent such disasters from happening, it is important to ensure that your board has a wide range of check this site out perspectives and abilities. It should also work effectively as a group. This requires setting up guidelines for managing your board such as accepting diverse perspectives and assuming leadership roles, encouraging an flexible structure (e.g. forming committees for new risks) and involving in continuous evaluation of the board and its individual members.

Another key principle for a board of management is to avoid getting too involved in the day-today activities of your company. This is because a large part of the job of a board is to determine the long-term direction for your business and how it fits into society.

This may seem like an obvious idea, but many companies are struggling to implement this idea. For instance, some board members start having meetings directly with management without consulting the CEO, or make quick judgments in an effort to be helpful. This can put the CEO in a difficult position. The CEO must work with the chairman of the board and other directors to resolve the issue and regain trust.