The board of directors plays an important role in organizational strategic governance. The demand for the board to deliver becomes crucial when numerous considerations and risks surround an organization. Good corporate governance requires that the full board address critical board responsibilities, while board committees address daily and operational activities.
Getting every aspect of board management implemented is not an easy task. Corporation secretaries are equipped to deliver the delicate balance.
A key tenet of good governance requires a board work-plan. This ensures effective and efficient management of the annual activities, considering the stakeholders involved. An annual board work-plan must reflect the medium-term strategic organizational goals of the next 3–5 years. This calls for having a list of the year’s dos and don’ts, but most importantly, a priority list.
Board meetings differ depending on the needs of the organization. The schedule outlines how the board will operate and make the best use of the director’s skills and time. Time is precious, and when well-managed, much is achieved in propelling an organization in the right direction. Additionally, a board work-plan keeps directors well informed.
Structuring a board work-plan is important in ensuring the following is achieved:
Enhance accountability – the annual board activities are broken down in a systematic procedure to ensure directors’ responsibilities are achieved.
Attract investors – stakeholders’ engagement is enhanced and promoting confidence in organization management.
Creates efficiency – promotes efficient and effective utilization of limited resources.
Promote accountability and performance – individual director and committee roles are clearly stipulated, and adequate time allocations are made.
Creating an annual roadmap requires consultation among the board chairperson, chief executive officer, and corporation secretary. To achieve a collective goal, all aspects of board responsibilities must be considered. The activities involved in meeting a board’s term of reference shall include: strategic planning, approving the annual budget, financial audit, corporate policies and regulations, planning the annual general meeting, compliance and risk management, CEO performance review, and preparing the succession nominees for the next year.
Getting every aspect of board management implemented is not an easy task. Corporation secretaries are equipped to deliver the delicate balance. With Bellmac Consulting LLP, we focus on delivering tailor-made board development and management services for your organization’s growth.