The board's job is to provide guidance and oversee the executive management team. It makes sure that company policies are followed and that all fiduciary obligations are adhered to. While some boards grant too much power to their executive leadership but the majority of boards do not go far enough. Unfortunately, the media is overflowing with tales of business disasters caused by corrupt or incompetent management teams.

To avoid these disasters, it is important to ensure your board has many perspectives and expertise. It should also work effectively as a team. This means establishing the principles of management for your board, such as embracing different perspectives and taking on leadership roles, creating an flexible structure (e.g. setting up committees to deal with new risk areas) and involving in continuous assessment of the board and individual members.

Another key principle for a board of management is to not be too involved in the day-to-day activities of your company. The primary function of a board is to establish the long-term vision for your business and its place in society.

This may appear to be something that is easy to implement, but many businesses struggle to implement this concept. For example the board members may begin having meetings directly with management without consulting the CEO, or take a leap of faith in the hope of being helpful. This www.contactboardroom.com/boardmaps-and-boardpaq-board-platforms-key-characteristics can put the CEO in a difficult position. In the ideal scenario, the CEO will collaborate with the chair of the board and other directors to work out a solution to the issue and build trust once more.