The ideal governance of a board is a challenging concept to attain. It is a goal that boards must strive for. They can reach it by understanding what good board governance will look like.
To do so boards must be organized in a way that is appropriate, well-chosen, as well as with a view to the future. They must be able combine the needs of the company with the needs of its stakeholders as well as shareholders. They must also be able to manage new regulatory pressures as they occur.
The success of a non-profit is largely dependent on the board’s capacity to face these challenges, and to ensure that they are positioned to be sustainable in the future. A strong board can help its trustees to fulfill their responsibilities and serve the community by ensuring that the organization’s programs are in good shape or on track for accreditation.
A key structural element is the creation of a suitable agenda and schedule for the board. It must be clear enough to allow directors to determine the issues that require their attention and what ones can be delegated to committees or management. It should also define what the board is required to be informed or consulted about matters that don’t require a decision of the board in its entirety.
In the end, boards must be able to identify their own shortcomings and areas for improvement. A review every year is helpful, as it lets the board compare its performance to that of peers.