A corporate organisation should have an effective and experienced board of directors in order to succeed in business. Having an effective and experienced board is easier said than done as it is an uphill task to have one in place. It takes time, effort and financial resources of an organization during the process of searching and engaging the candidates who meet the selection criteria. But what is an experienced and effective board member? In my view it is that board member who has accumulated knowledge, experience, wisdom and insight in the area of business which is beneficial to the organisation. We should always remember that the board is hired for steering the organization forward.
Experienced and effective board members are highly compensated for their services to the organization and therefore cannot easily be afforded by small and mainly family owned organisations. It is however important to note that the benefits the organisation gets from an experienced and effective board are immense. The benefits of having an effective and experienced board are many and can be summarised as follows;
- The board gives a strategic direction or vision of the organization
- It sets the goals and evaluates performance against the goals
- Ensures the organization is a good corporate citizen
- It ensures a good risk management system is in place
The detailed roles of the board are as follows;
|2.||Sets a performance system||
|3.||Compliance with the regulatory framework||
|4.||Establishment of risk management system||
It may look quite expensive for an organization to engage an effective and experienced board if one does not look at the benefits which accrue to the organization as a result of having one in place. Therefore do not dismiss the idea of an effective and experienced board on account of costs alone. You should weigh your costs against the benefits accruing to your organization.
Author: John Muhaise Bikalemesa
Director: Big Drum Advisory Services Limited