The board’s role is to oversee the business by exercising a vigorous and diligent supervision in crucial areas like strategy and risk. It is not, however, able to micromanage the company’s operations by intervening in management’s duties. The purpose of these responsibilities is to help the executive team and the CEO create value for shareholders.

Boards need a clear structure and governance framework to perform their duties effectively. This includes a clear definition of roles from the chairperson all the way to the individual directors as in a decision-making process that is designed to determine the priorities.

Furthermore, a strong board governance framework requires a well-rehearsed process for arranging meetings and agenda items. It also contains a robust governance framework that clearly defines the role of the board and its relationship with management. The framework also includes an explicit description of the board’s governing principles and standards, which include honesty, transparency and good communication.

The board should also establish a plan for selecting the CEO, preparing that person and overseeing the succession. It should have a plan to address urgent issues that occur and be prepared to change its focus and activities if the need arises. The board’s governance procedures must be in sync with the business and the board must be able to anticipate and respond to any changes that happen in the current fast-paced and complex business environment. Board members need to dedicate lots of time and energy to their work as board members.

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