The composition of boards has attracted a lot of attention in recent years as investors are focusing on the importance of the role board directors play. Boards are composed of individuals who each bring their own experience, knowledge, and expertise to the table. But the underlying goal of any effective board is to work as a group to monitor the performance of the business https://boardmanagementsystem.info/what-is-the-biggest-challenge-facing-the-ceo-of-today/ and support the CEO.
To achieve this goal, boards must be well-equipped and organized to accomplish its mission. This is often achieved by forming a team that can act as a sounding-board and find out the truth.
In general, it is suggested that boards have a mix of new board members as experienced directors to give an equal amount of knowledge and perspectives. The most important factor in achieving this is having an objective framework in place that allows nominating committees and the board as a whole to assess the skills as well as the qualities and talents that are required to make a perfect candidate for a director position.
A matrix of the traits of board members is an effective tool that can be used to guide the selection process. It is important to keep in mind that the mere fact that someone has certain characteristics, does not mean they are the ideal candidate for the position.
A special kind of blockage to changes in the composition of boards can arise in relatively new companies that are controlled by one or more of the founding fathers who believe that they have the best idea and do not want to risk change. This can result in a “founders’ syndrome” where the nominating committees fail to acknowledge the need for fresh talent and a fresh look at board composition.
