A perfect board’s governance has become the subject of debate due to the scandals that have made headlines. What is perfect governance? What are the best practices to get there?
Good governance is built on the best practices of having M&A success with advanced data management clear policies for governance, encouraging an inclusive board, as well as conducting regular reviews. Together, they assist boards to deal with governance, risk and compliance (GRC) issues and provide value to the stakeholders.
It is vital for boards to define the unique role of the executive team as well as the board. They can then ensure that these roles are aligned. They can then stop the need to supervise daily operations. The board should focus on the big picture, and delegate day-today management to the leadership team.
Another best practice is to promote diversity in governance as well as gender and ethnicity. This will ensure that the board has diverse perspectives to discuss issues, and take decisions. It is also important that the board stays up with the most recent regulations that will impact the governance.
The board must also meet regularly and set goals and objectives for the business. This will ensure that all decisions are strategic. This will also allow you to better measure the effectiveness and progress.