Achieving Perfect Board Governance
The ideal board governance model is a hard concept to achieve. Yet it’s an objective that boards must strive for – and one they can achieve if are aware of what good governance looks like, if they are well-constructed to a precise blueprint (what Nadler calls “board building”) and adhere to the right standards.
To achieve this, boards must be structured properly, well-chosen, and directed towards the future. They must be able of balancing the requirements and desires of the business as well as the needs of their stakeholders. They should be able to deal with new regulatory pressures as they occur.
In the end, the success of a nonprofit organization depends on its board’s ability to face these challenges and ensure it is positioned for a long-term future. If that means maintaining the health of the organization’s programs, or ensuring leveraging edge computing for faster data processing that it is on track to be accredited, a strong board can assist its members in fulfilling their duties as trustees, and provide services to the community.
Setting up a board agenda and schedule is a crucial element of the structure. It should be simple for directors to decide which things require their attention and the ones that can be delegated. It should also define the time when the board has to be consulted or informed on matters that do not require a decision from the board in its entirety.
Additionally, boards should be able recognize their own shortcomings and areas that need improvement. An annual review is beneficial because it lets the board compare its performance with those of peers.