There are umpteen cases, where a mediocre or mismanaged advice from the board, plus lack of accountability, have done long-term damage to a business.
Actually, board members form an integral part of the company’s decisions and hence future. The CEO relies on its board members to take suggestions, as well as taking visionary calls, for the company’s growth and prosperity.
Below-mentioned are 6 important traits for effective board members, as outlined by Business Enhancement Expert, Hirav Shah.
Table of Contents
6 important traits for effective board members
1. Be An Independent Body
A board member, comprising people with sensible and impartial views on decision-making process up, heaves the company’s position to new heights. Board members who simply act as puppets in the hands of the CEO are ineffective and downgrade the company’s growth subsequently. Yes, they do…
2. Appointment Of Effective Board Members
Board members decide the company’s standpoint in the market and are wholly responsible for its down gradation as well. So, recruiting a good set of board members seems time taking, but it is worthy for the company’s future.
People having wider and diverse work experience help create a better team of members. Select those who have their own standpoint and view.
3. Representation of Three Basic Positions
At the start of a business or company, there should be at least 3 significant positions representing a management team headed by only one CEO.
Each new investor should be paralleled with one independent director for a broader viewpoint and new ideas. Multiple independent directors can create chaos and pose problems. So, investors should give space and time to analyze and discuss openly.
4. Develop Mutual Respect and Accountability
Sometimes there can be a difference of opinion in making a decision. So to cope up with it, one should take the commonalities to make it smooth. It can be created by giving respect to different opinions. After some point, they might mold in with your decision with greater understanding.
5. Be Brave To Challenge and Openly Debate
Being CEO may seem to be the head of all but if the leadership skill is weak then a board member with staunch opinion and who is not afraid to rectify and debate with the head is an absolute necessity.
A board meeting should consist of inclusive new ideas, a wider view and different take on such action in future should be thoroughly discussed.
6. Learn To Think Out Of The Box
A highly effective board composed of highly experienced folks in their respective fields, who have already analyzed the project, know its output and consequences in the future. Through their foresightedness they can bring out innovative ideas, so that it becomes easy for a new CEO to implement, guided by the board members, of course.
Final Thoughts
“Weak and ineffective boards can hold companies back. Only, strong boards can help propel a company forward. Now, you know where you need to work on for your company’s accomplishment, success, and profitability and prosperity”-Concludes Hirav Shah, Business Transformation Leader.
Frequently Asked Questions
What does a board member mean?
A Board member is an elected participant on the board of directors of a company or the supervisory committee of a corporation.
What do you call a member of the board?
You can just say that, the title of a board member is Director.
Is a board member an employee?
Board members are not considered employees of the organization.
