The ideal board governance model is a difficult concept to attain. Yet it is something boards must strive towards – and one they can achieve if they are aware of what good governance looks like when they are built according to a precise blueprint (what Nadler calls “board building”) and if they adhere to the right standards.
To accomplish this, boards need to be well-structured, selected and focused on the future. They should be able to combine the needs of the company with the needs of its stakeholders as well as shareholders. They should also be able to handle new regulatory pressures, when they occur.
The success of a non-profit ultimately rests on the board’s capacity to face these challenges and ensure that they’re set up for a sustainable future. If that means ensuring the sustainability of an organization’s programs or ensuring it is in good shape for accreditation or accreditation, a strong board will help its members fulfill their duties as trustees, and help the community.
The most important aspect of a structure is establishing a proper agenda for the board and a schedule. It must be clear enough for directors to discern the issues that need their attention and which ones can be delegated to committees or management. It should also stipulate the time when the board should be informed or consult on issues that don’t require a full board vote.
Lastly, boards should be able to identify their own weaknesses and areas that need improvement. This is where an annual review can come in handy because it allows the board to assess its effectiveness and compare it with peers’.