Achieving Perfect Board Governance

The perfect board governance is an elusive concept. However, it is a goal boards should strive for and they can achieve if recognize what good governance looks like and if they’re built in accordance with a strict blueprint (what Nadler calls «board building») and adhere to the right standards.

To do so boards must be organized in a way that is appropriate, well-chosen, as well as focused on the future. They should be able to balance the desires and needs of the business as well as those of its stakeholders. They should also be capable of dealing with the new regulatory pressures as they come up.

The success of a non-profit organization is dependent on its board’s ability to address these challenges and ensure that they are positioned for a long-term sustainable future. Whether that means monitoring the health of the organization’s programs, or keeping it on track to be accredited, a well-functioning board can help its members fulfill their duties as trustees and contribute to the community.

Establishing a board agenda and schedule is an important structural element. It must be clear enough for directors to be able to see the issues that require their attention and what ones can be given to committees or managers. It should also specify the time when the board has to be consulted or informed about matters that don’t require a decision by the board in its entirety.

Finally, boards must be able to identify their own shortcomings and areas for improvement. An annual evaluation is useful because it lets the board compare its performance with that of peers.

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