The ideal board governance perfect board governance model is a hard concept to attain. Yet it’s something boards must strive towards – and one they can achieve if understand what good governance looks like as long as they are constructed in accordance with a strict blueprint (what Nadler calls «board building») and if they adhere to the right standards.
In order to do this, boards need to be well-organized, selected and geared toward the future. They must be able manage the needs of the business with the requirements of its stakeholders and shareholders. They should be able to deal with any new regulatory pressures that they arise.
In the end, the viability of a non-profit organisation is dependent on its board’s ability meet these challenges and ensure that it is in a position for a long-term sustainable future. A well-functioning board can help its trustees fulfill their duties and help the community by ensuring the programs of the organization are healthy or on track for accreditation.
The most important aspect of a structure is establishing a proper board agenda and schedule. It must be clear enough for directors to know what matters require their attention and which ones can be delegated to committees or management. It should also clarify when the board must be informed or consulted about issues that do not require a decision of the full board.
In the end, boards must be able recognize their own shortcomings and areas for improvement. This is where an annual review is a great idea, as it enables the board to assess its effectiveness and compare it to peers’.