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Best Practices for Boards

In our latest comprehensive guide, Best Practices for Boards, we provide insights and recommendations for corporate board governance. Whether you are a private, public, or non-profit board, Best Practices for Boards has extensive resources to enhance the effectiveness of your board. Our guide also contains information on the following areas...

1) Role of the Board

 

2) Forming the Board

 

3) Measure and Monitor Board Performance

 

Role of the Board

 

Framework: The Board establishes the framework for the organization.


• Determines the company's vision and mission to guide and set the pace for its current operations
and future development.


• Makes sure the board and committees are functioning well.


• Defines what benefits the organization is providing to whom and what it will cost to deliver
them.


• Determines how organizational performance will be measured.

 

Accountability: The Board is responsible for the behavior and performance of directors and the CEO.


• Hires, evaluates, compensates and fires the CEO.


• Ensures the organization follows the laws, behaves in an ethical manner, and does not waste the
resources trusted in its care.


• Monitors financial and operational performance.


• Work with the CEO to effectively prepare and communicate an organization’s approach to risk management, including emergency and contingency plan.


• Serves as the last court of appeal within the organization.

 

Direction: The Board sets the direction for the organization.


• Sets goals and approves and monitors the strategic or business plan.


• Provide insights on strategic challenges, priorities and other considerations.


• Develops organizational policies, including the policies that govern how the board will operate.


• Approve major corporate transactions, such as acquisitions.

 

Program Oversight and Support: The Board of Directors represents the organization to the outside world and provides support and counsel to the CEO.

• Serves as an advocate for the organization.


• Communicates the value of the organization to
prospective donors.


• Attracts donors, supporters, favorable press, and new
board directors

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