The key to having a perfect governance is not just creating successful processes and structures, but also demonstrating the right behaviors, building trust, cultivating an ethical culture, and interacting with shareholders. When boards are able to do all this well, they can provide real value to health institutions by keeping their organizations on track and moving forward for the benefit of the public.
Effective boards have a clear, solid structure that clearly defines their duties. This includes defining the responsibilities of the chairman and chief executive officer, as well as directors individually and committees. Structures that are well-defined make directors more able to focus on their specific areas of expertise and enables directors to work as in a team.
The board must develop a detailed plan to govern the company. This includes identifying the most pressing issues, setting strategic goals, and implementing strategies for managing risk. It must also ensure that it has the knowledge and skills to fulfill its responsibilities. For instance, it should have a mix relevant skills and experience in a specific field.
A solid, reliable board is one with a high degree of expertise, skills and experiences that will enable it to manage major risks and contribute to the success of the business. It will be able to handle the different demands and expectations of stakeholders including employees, customers, or investors. This will require a solid strategy and a clear understanding of the company’s boardmaps successful collaboration mission and values.
