Corporate Boards
The board is responsible for governing a company and ensuring that it is operating legally and in the interest of its shareholders and other stakeholders. It also functions independently from the management of the business and manages its day-today operations.
In the past 10 years boards have gotten rid of their image as a group of powerful insiders operating only for profit, and are hesitant to fire CEOs. Instead, they’ve evolved into advisory teams – essentially player coaches – that manage a variety of demands ranging from traditional like increasing revenues and creating solid succession plans to more recent ones like cutting down on CO2 emissions and boosting social equity.
How do today’s top board members managing the flood of risk and the whirlwind of forces shaping our economy’s future? To answer this question, Fortune surveyed board members and examined the data of a range of companies. While we couldn’t find a board that was fully representative of the modern model the most successful boards next page had a few fundamental characteristics.
Diverse board members.
The COVID-19 pandemic taught boards that it’s ever more important to have a range of perspectives and backgrounds within the boardroom in order to guide strategy and weather crises. The most effective boards have a culture that is openness and trust and strive to keep their knowledge up-to-date through ongoing education and training, directors said.
The most active boards adopt an active approach to their work and have fewer committees assigned to them which helps keep the necessary line between the duties of the board and management. They also work to strengthen their financial understanding and gain a better understanding of the technology they’re using, the most recent developments in cybersecurity and other issues that confront companies today.
Vélemény, hozzászólás?