The key to effective board governance is perfect board governance not only creating winning structures and processes but also displaying the appropriate behavior, building trust, fostering an ethical culture and interacting with shareholders. If boards can do all of this effectively, they are able to add real value to health institutions and keep them on track and propelling forward for the benefit of the general public.
Effective boards have a clear, solid structure that clearly defines their roles and responsibilities. This includes defining the responsibilities of the chairman and chief executive officer as well as individual directors as well as their committees. Having well-defined structures makes directors able to focus on their individual areas of expertise and allows them to work as an entire team.
The board should create an elaborate plan for the management of the organization. This includes identifying crucial issues as well as setting strategic goals and developing strategies for managing risk. It must also ensure that it has the necessary capabilities and understanding to fulfill its responsibilities, for instance by ensuring there’s a mix of relevant skills in the board, and making sure that the board has the appropriate knowledge in a particular area.
A strong, dependable board will have high levels of knowledge, skills and experience that allow it to manage risks and contribute to the overall success of the company. It will be able to meet the diverse demands and expectations from the stakeholders, whether they’re employees, customers or investors. This will require a solid grasp of the company’s values and goals as well as a solid plan of action to meet them.
