Boards are accountable for hiring, supervising and terminating senior management. They also make sure that the company is on track to reach its strategic goals and ensure that management is in good shape. They also provide direction and assistance to the CEO, and ensure that the company is in compliance with regulatory bodies and ethical standards.
Most boards are focused on the big picture, much as a jumbo jet flies at 30,000 feet. A CEO is similar to pilots flying at 2,000 feet and making adjustments as necessary.
The primary task of a board is to develop an overall strategy for the business, and then work together as a unit to implement it. They can be extremely helpful during times of crisis. “No CEO is expert in every area,” says Brotherton, “but a board can provide them a perspective that is extremely strategic and high-level which allows them to steer the company through difficult waters.”
One of the most valuable contributions board members make is their professional networks. A board member who has expertise in a specific industry or practice could connect the company with valuable resources, such as potential strategic partners, investors, and professional advisors.
A successful board member is able to offer constructive criticism and positive input on matters of strategic importance including organizational investments such as performance evaluations, funding and policy formulation. The opportunity to hone your governance skills and build credibility in the business world can impact your career. The opportunity to build a solid network of professional contacts can provide opportunities in both the public and private sectors.
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