BOARD DEVELOPMENT from a CHAIRMAN'S point of view
0 likes2,053 views
This document outlines the importance of boardroom development from a chairman's perspective, emphasizing understanding roles, recruiting and retaining effective board members, and best practices for communication. Key topics include fostering a transparent culture, ensuring alignment with organizational goals, and promoting inclusion and engagement among board members. It concludes with insights on leadership and accountability within corporate governance.
BOARD DEVELOPMENT from a CHAIRMAN'S point of view
- 1. B O A R D RO O M D E V E L O P M E N T Board Chairman’s Perspective Presentation By:André Harrell
- 2. O B J E C T I V E S • Board Development: UnderstandingYour Role • Board Development: Recruiting and Retaining Board Members • Board Development: StrengtheningYour Board • Board Development: Best Practices-Communication
- 3. U N D E R S TA N D I N G Y O U R RO L E BOARDROOM DEVELOPMENT
- 4. U N D E R S TA N D I N G YO U R RO L E • The Board of Directors should provide leadership for the organization • Roles, responsibilities, and powers are usually outlined in bylaws • Members should fully understand their roles and responsibilities • Members have diverse backgrounds but share common goals
- 5. U N D E R S TA N D I N G YO U R RO L E • Every organization should have a formal board policy manual • Board members should be aware of current policies • Members should “Lean In” to corporate discussions…and not just “show up” once a month • Members should look out for the best interest of the organization
- 6. U N D E R S TA N D I N G YO U R RO L E • The Board Chairman should foster a transparent, consistent, and accountable culture • Always have your financial records audited by an outside agency • Focus on results.What is your mission? How do you measure progress? • Understand the importance of fresh perspective…and diverse thinking • Develop a conflict-of-interest policy
- 7. U N D E R S TA N D I N G YO U R RO L E • Annually review your organization’s mission • Board orientation-continuing education • Actively solicit input from the community • Support the healthy development of the CEO and ensure there’s a genuine interest towards their success • Each board member is expected to be good stewards of the organization, community, and the stockholders at large
- 8. R E C RU I T I N G A N D R E TA I N I N G B O A R D M E M B E R S BOARD DEVELOPMENT
- 9. R E C RU I T I N G A N D R E TA I N I N G B O A R D M E M B E R S “Where you go is determined…by where you are”
- 10. R E C RU I T I N G A N D R E TA I N I N G B O A R D M E M B E R S Determining “Inclusion Fit”…not good fit • Does the board mirror the company…importantly the community? • Don’t “Sell Diversity”. Ensure each potential board candidate can see it, understand it, and realize it as the organization’s vision/mission • Perhaps have potential board candidates' “interview” with current board members. Post COVID19 perhaps visit the organization site. • Invite final candidates to a board meeting
- 11. R E C RU I T I N G A N D R E TA I N I N G B O A R D M E M B E R S Expectation/Requirements Discussion • Roles and responsibilities for each board member must match the skill/competency they were recruited for • Ensure each new board member understands fully their job description…no room for ambiguity here • Ensure new members get involved immediately (e.g. assign committee responsibilities, and/or open projects • Board Chairman is responsible for consistent and unwavering engagement takes place among new and tenured members.
- 12. R E C RU I T I N G A N D R E TA I N I N G B O A R D M E M B E R S Retaining Board Members…the responsibility of Board Chair • Ensure there’s mutual respect among board members • Board Chair retainment goals: • Forge a Partnership: creating a teamwork environment where everyone feels valued • Inspire Commitment: ensure there’s alignment towards organization vision/mission • Grow Skills: promote board competency growth where each member can learn from each other • Promote Persistence: ensure there’s an environment that encourages engagement and openness • Shape the Environment: build an environment of INCLUSION…!
- 13. S T R E N G T H E N I N G Y O U R B O A R D BOARDROOM DEVELOPMENT
- 14. S T R E N G T H E N I N G YO U R B O A R D Board Chairman Leadership • Create a CollectiveVision • Board Members should be invested in the success of the organization • Work on Communication • Thorough and applicable meeting minutes • Focus on engagement and required participation • Never avoid conflicts, address them…solve them • Maintain a respectful environment where inclusion is mandatory • Board Retreats/Team building to encourage partnership and productive communication
- 15. S T R E N G T H E N I N G YO U R B O A R D • Be Proactive • Do bylaws need to be updated? • Does the board have a strategic plan that corresponds to cooperation? • Prioritize • As a board, prioritize what is most important and follow through. Be realistic about what you can accomplish • Think about the future of your board • Who will lead and serve the board over the next 5 years? • What skills, knowledge, and other qualities will strengthen the board? • How will we foster and develop board leadership?
- 16. S T R E N G T H E N I N G YO U R B O A R D • Tips for keeping strong board members engaged • Tighten up your board meetings (e.g., meetings no more than 2 hours, keep to agenda, focus on the strategic…not the minutiae) • Provide opportunities for board members to be engaged in the work of the organization • Conduct board member evaluations • Conduct retreats and outings • Develop a simple board building program/project
- 17. B E S T P R AC T I C E S : C O M M U N I C AT I O N BOARDROOM DEVELOPMENT
- 18. B E S T P R A C T I C E S : C O M M U N I C AT I O N • What NOT to do? • Lack of Patience • Poor behavior or self-serving behavior • Personal or hidden agendas • Getting stuck in alliances and coalitions regardless of the issue • Lack of ground rules • Lecturing, chastising, threatening, bullying etc. • Competition, turf wars, zero-sum games, and winners and losers • Disengagement from community
- 19. B E S T P R A C T I C E S : C O M M U N I C AT I O N • What to do? • Listen…don’t just hear. • Never avoid conflicts, address them so that they don’t turn into CRISIS Make meetings more effective: • Create an inclusive and open environment so that members can express themselves confidently • Establish realistic expectations • Avoid pressuring members to see a subject one way but encouraging diversity in thought • Always state objectives at the start of the meeting, follow agenda • Ensure EVERYONE can provide input • Periodically check to see that the meeting is on task
- 20. F I N A L T H O U G H T S
- 21. F I N A L T H O U G H T S Corporate Board Definition: a body elected to govern a corporation on behalf of shareholders. Generally chosen to represent both management and shareholders interests, it establishes general polices for the organization, including dividend policies, and hires/fires major executives. It is answerable to shareholders for its decisions. “A board is comprised of a group of exceptional leaders from all backgrounds and experiences whose responsibility and accountability is tied to its shareholders, corporate organization and community it ultimately serves” (courtesy André Harrell) André Harrell AH2 Management