The perfect board governance is an elusive concept. But it is something boards must strive for and they can achieve if they recognize what good governance looks like, if they are well-constructed to an exacting blueprint (what Nadler calls “board building”) and if they exhibit appropriate behaviors.
To accomplish this, boards need to be well-structured, vetted and geared toward the future. They should be able to balance the requirements and desires of data room for everyday usage the company, as well as those of its stakeholders. They should also be able to manage new regulatory pressures whenever they occur.
Ultimately, the success of a non-profit organization is contingent on its board’s ability to overcome these challenges and ensure it is well-positioned for a long-term sustainable future. If that means making sure that the health of the organization’s programs, or keeping it in good shape for accreditation, a strong board can assist its members in fulfilling their duties as trustees, and serve the community.
A key structural element is the creation of a suitable agenda for the board and a schedule. It must be clear enough for directors to know the issues that require their attention and what ones can be delegated to management or committees. It should also define when the board must be informed or consulted about matters that do not require a full board decision.
The board must also be able identify their own shortcomings and areas of improvement. An annual review is beneficial as it allows the board to assess its performance with those of peers.