A well-designed board management strategy drives value across the board, allowing businesses to thrive in times of change, complexity, and crises. A strong mission, clear engagement model , and efficient information practices are the foundations of effective governance that we define as:
Leadership
To ensure efficient governance, boards must choose the best board leaders who can effectively run meetings and facilitate constructive discussion and invest in development, training and feedback. These important link leaders must also maintain confidence among their fellow directors, CEOs and other board members, and settle conflicts when they arise.
The board chairperson is a key mediator because they set the tone for meetings and guide the resolution process when necessary. They must be prepared to raise difficult issues when the opportunity arises. This is because these discussions require greater scrutiny than those involving more straightforward topics.
The term limit and the tenure
The time limit for board chairman posts should be designed to be consistent with the company’s bylaws, and should be reviewed periodically to ensure that the board is made up of a diverse set of individuals with diverse skills and backgrounds. Most bylaws provide for a period of 2 or 3 years, while others do not have a limit.
Retention of key talent
The best boards have board members who can provide valuable expertise, knowledge, and connections to key stakeholders. They are open to bringing in fresh perspectives and leveraging external expertise when needed, and they are able to quickly adapt to changing circumstances and priorities.