Corporate boards are accountable for the overall activities of an organization. This can be a company or a charitable organization. They are not concerned with the details that are handled by company executives. They are fiduciaries to their organisations, which means they put the interests of the organization prior to their own personal needs.
They provide constructive and supportive criticism to the CEO. They help the CEO find ways to meet the company’s strategic goals and they make sure that the CEO is accountable to the achievement of those goals.
A well-managed board pays attention to culture and talent in addition to ensuring that the CEO is equipped with the tools is required to execute the strategy. This is because a strategy is only effective if the management and employees are capable of carrying it out, and the organization’s talent and culture are inexorably linked to its ability to execute on its strategy.
A well-managed board is up to date with latest trends in the business and market. This requires an effective information architecture that has efficient methods of collecting, disseminating, as well as communicating information.
A well-managed Board is aware of its own strengths, weaknesses, and constantly strives to improve the effectiveness of the Board. This sometimes involves not being afraid to challenge traditions like formal operating procedures or the committee structure that has been in place for decades. It may mean bringing on new directors who have special skills and experience like extensive knowledge of markets around the world or the ability to run the business that is two or three times bigger than the board’s company.