Board composition has received a lot of attention in recent years, as investors have gotten focused on the important role board directors play in the business. Boards are made up of individuals who bring their individual experience, knowledge, and expertise to the table. But the goal of every effective board is to work as a team in order to evaluate the performance of the organization and support the CEO.
To achieve this goal the board must be well-equipped and structured to accomplish its mission. It is usually achieved through the creation of a solid team that can find the truth and serve as a sounding board that is critical.
It is generally recommended that boards have directors with experience and first-time directors to ensure a variety of perspectives and experience. The most important factor in https://boardmanagementsystem.info/setting-goals-and-objectives-for-business-for-short-and-long-terms/ achieving this is having an objective framework in place that allows nominating committees and the board in general to assess the skills and talents that are required to be a successful candidate for a director position.
A matrix of the character traits of board members is an effective tool that can be used to help guide the selection process. It is important to remember that just because one has certain traits, does not mean that they are the ideal candidate for the position.
A particular kind of obstruction to changes in board composition can arise in relatively new organisations that are dominated by one or more founding fathers who believe that they know best and do not want to risk changing. This can lead to “founders syndrome” where the nominating committees do not recognize the need for fresh talent and a refresh of board composition.