The secret to a perfect board governance is not just setting winning structures and processes but also displaying appropriate behaviors and building trust, creating an ethical culture and engaging with shareholders. If boards can do all of this well, they can contribute real value to health care institutions in keeping their operations on track and pushing them forward for the benefit of the public.
Effective boards have a clear, solid structure that clearly defines their responsibilities and functions. This includes defining the roles of the chairman, chief executive officer and individual directors as well as their committees. A well-defined structure makes it easier for directors to concentrate on their own areas of expertise and allow them to work as in a team.
The board must develop an elaborate plan for the governance of the organization, which includes identifying key issues, setting strategic goals and developing strategies for managing risk. It should also make sure that it has the proper capabilities and understanding to fulfill its duties, such as by ensuring that there is a mix of relevant expertise on the board, and making sure that the board has the appropriate experience in the field.
A strong, dependable board is one with a high degree of expertise, skills and experiences that will enable it to manage major risks and contribute to the success of the company. It will be able to meet the various expectations and demands of stakeholders such as employees, customers, or investors. This will require a clear strategy and a clear understanding of the company’s mission and values.
