A perfect board’s governance is a hot subject due to high-profile corporate scandals. But, what exactly does it mean to have perfect governance? What are the best practices to get there?
Good governance is founded on the best practices of having clear policies for governance, encouraging a diverse digital marketing automation tools board, and conducting regular reviews. Together, they aid boards address governance, risk and compliance (GRC) issues and provide value to the stakeholders.
Boards should clearly define the roles of the executive as well as the board. They should then ensure that these roles are aligned. This will let them avoid directing the daily activities of the company. The board should be focused on the big picture and delegate the day-to-day tasks to the executive team.
Another best practice is to promote diversity in governance and decision-making, regardless of ethnicity and gender. This will ensure the board has a variety of perspectives to discuss issues and take decisions. It is also important that the board is up-to-date with the most current regulations that affect the governance.
The board must also meet regularly and set goals and objectives for the company. All decisions must be strategic. This will also make it easier to measure the progress and effectiveness.
