A strong board management strategy drives value across the board, allowing companies to thrive in times of innovation or complexity, as well as crises. Effective governance is anchored by a clear mission and clear engagement models and effective information practices. We define this as:
To ensure effective governance, boards must select the best board members who run meetings effectively, foster constructive discussion, and invest in development, training and feedback. These leaders also need to maintain a high level of trust between their co-directors and CEOs and resolve conflict when it occurs.
As a mediator, the board chairperson can set the tone and guide the resolution process. They should be prepared to raise difficult issues when the opportunity presents itself. This is because these discussions will require more detailed scrutiny than those involving less difficult topics.
The duration of the term and its limits
The time limit for board chairman posts should be designed to be in line with the company’s bylaws, and should be reviewed on a regular basis to ensure that the board is comprised of a diverse group with different qualifications and backgrounds. A majority of bylaws stipulate a term of two or three years, while others do not have an upper limit.
Retention of key talent
The most successful boards keep the most important board members who offer valuable expertise, skills, and connections to key stakeholders. They are open to bringing new perspectives and leveraging external expertise when required, and they are able to quickly adapt to changing conditions and priorities.
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