The perfect board governance is a challenging concept to achieve. But it is an objective that boards must strive towards – and one they can reach if they are aware of what good governance looks like when they are built according to a precise blueprint (what Nadler calls “board building”) and have the proper behavior.
In order to do this, boards must be well-structured, selected, and oriented toward the future. They must be able M&A success with advanced data management manage the needs of the organization with the demands of its stakeholders and shareholders. They must also be capable of dealing with new regulatory demands as they develop.
The success of a non-profit organization ultimately depends on the board’s ability to address these challenges and ensure that they’re set up for a long-term sustainable future. A strong board can help its trustees fulfill their roles and help the community by ensuring the programs of an organization are safe or in good shape to be accredited.
The creation of a board agenda and schedule is an important structural element. It should be easy for directors to identify which issues require their attention and the ones that can be delegated. It should also define when the board needs to be notified or consulted on matters that don’t require a full board decision.
The board must also be able to recognize their own weaknesses and areas for improvement. A regular evaluation is beneficial, as it allows the board to evaluate its performance with those of peers.