Highly effective and efficient Boards can identify and bridge the gaps, develop policies and practices to ensure ongoing strategy evaluation and practice leadership influence.
The corporate board is appointed to practice governance discipline. Governance provides monitoring, measuring, and enforcement mechanisms to corporate management. The more complex contemporary organizations become, the broader scope of corporate governance turns out to be.
In fulfilling the roles of corporate governance, the corporate board needs to be talented enough to participate in strategy design and oversight, work together as a group to speak in one voice, delegate operational issues to the management, set cultural tones, influence talent development policy, and monitor performance to improve overall corporate effectiveness and efficiency.
Orchestrate strategy across the enterprise: The board as a governance body oversees business strategy. The strategy defines what the organization will do, with whom and how they will be successful if objectives are achieved on value, on time, on budget. Corporate purpose, value, vision, mission, strategy are not oxymorons but interconnected, crucial business components to lead business success. Without purpose, companies’ management are living in hope with the moving parts operating in completely different directions and no control over their destiny. Thus, boards need to work closely with the management to clarify business purpose, vision and strategy, etc, to ensure the business is running in the right direction.
With purpose, it comes with strong value systems, common beliefs, and shared objectives. The strategy is better fit for solving critical business issues and improving organizational effectiveness and maturity. Insightful BoDs ask tough questions to validate a strategy: Does the company have a business plan, fully developed, showing where the checks and balances are? Does the strategic plan describe how to not only implement strategic decisions but also how to monitor success? Can the management define “SMART” goals? Do they apply the rules of good risk management? If you had a complete strategy validated, and implemented it to a large degree, you would be successful.
Set a cultural tone from top down to expedite strategy execution: Strategy will mean nothing if the underlying culture does not focus on values and a culture that are aligned with the strategy to facilitate success. Culture is one of the most important “soft” elements that a company will make since they will define how the company interacts with its various stakeholders, and how to get the work done to realize strategic goals. The corporate boards need to set the tone to improve cultural agility – the ability to effectively navigate, communicate, interrelate and function well in diverse cultural settings and a hyper diverse workforce. It’s a great way to motivate and inspire if everyone is pushing and doing a good job. Also, it helps to maximize the corporate resources toward achieving its mission.
The spirit comes from the top. The boardroom culture is engendered by board leaders who set the tone andgovern boardroom behavior. More often, an engaged board will work more harmonized as a team to achieve governance effectiveness. They work closely with the management to boost business energy, shape fitting mindset, and desired behavior as these factors are crucial in organizational performance. Once BoDs know that their nature (perception, performance, personality) affects their leadership role, the boardroom culture impacts corporate culture, so they can practice self-leadership, make a difference in their work and to their peers; only then, can they truly begin to show their leadership potential.
Update policies to refine talent development: People are talented with a unique set of capabilities and potential. The main goal of modern talent management is to put the right people in the right position with the right capability to solve the right problems. Corporate BoDs contribute to talent management by setting good policies and overseeing a solid people development strategy based on the business’s long-term perspective mixing with short-term needs. The board plays a crucial role in GRC practices, which include identifying talent gaps, overseeing the talent strategy as an integral component of the business strategy, enforcing GRC discipline.
There are many factors to consider when developing and managing talent, the corporate boards need to oversee the talent strategy as an integral component of business strategy, set good policies to refine talent development, integrate talent, culture, change, performance and potential management into a holistic approach, being aware of talent management related risks such as capability risks, capacity risks, cost risks, reputation, and regulatory risks,, etc.
Corporate Boards establish ground rules of governance and accountability, this comes through the corporate purpose. Highly effective and efficient Boards can identify and bridge the gaps, develop policies and practices to ensure ongoing strategy evaluation and practice leadership influence.