Achieving Perfect Board Governance

Perfect board governance is a concept that is difficult to define. Yet it’s a goal boards should strive for – and one they can achieve if they are aware of what good governance is as long as they are constructed in accordance with a strict blueprint (what Nadler calls “board building”) and if they exhibit appropriate behaviors.

To accomplish this, boards must be well-structured, selected and focused on the future. They must be able to effectively manage the needs of the company with the demands of its stakeholders and shareholders. They must be able to deal with new regulatory demands as they come up.

The success of a nonprofit organization depends on its board’s ability to face these challenges and ensure it is positioned for a long-term sustainable future. It could be as simple as monitoring the health of an organization’s programs or ensuring that it is in good shape for accreditation, a strong board can help its members fulfill their responsibilities as trustees and serve the community.

The most important structural element is establishing a proper board agenda and schedule. It should be clear enough for directors to know what matters cloud-based disaster recovery strategies require their attention and which ones can be given to committees or managers. It should also clarify when the board must be informed or consulted on matters that do not require a vote by the entire board.

The board must also be able to recognize their own shortcomings and areas for improvement. An annual review is beneficial, as it allows the board to evaluate its performance with that of its peers.