Board members and other stakeholders must be able to understand the company’s goals and strategies, as well as the risks. They must also know their duties and responsibilities to ensure that the business is operating legally and in the best interest of employees, shareholders, and all other stakeholders.
It is essential to have a clear board structure that includes people who have expertise in governance and leadership, as well as knowledge of your industry. The structure could be a mix of executive (also called “inside directors”) and nonexecutive roles (also called independently directors). It is important that the board has a solid chair who can effectively run meetings, nurture a culture of trust and feedback and invest in education and development.
A board also has officers who are appointed or elected to specific positions, such as president and vice-president. It is also normal for directors’ boards to have committees which are focused on particular activities such as audit or compensation.
To join a board, you must make an enormous commitment of time and effort. But it’s a great way to gain valuable experience in a team environment and learn to think differently. Plus, you’ll receive an income and possibly intriguing benefits like the use of the company jet or products.
You will gain an unique perspective as an officer which is different from the manager position that you currently hold. You will gain a new perspective on how a company functions. It will also help you become an effective manager, as you’ll learn how to report to the board.