In organizations, the board of directors is in charge of strategic oversight. Board responsibilities are time-consuming, and board meetings lack the comfort to effectively discuss agenda items to the bone. Board committees offer technical advice to the board. Board of director’s structure committees considering the organizational operations.
Board committees draw their mandates from board charters and committee terms of reference. The guiding principle ensures accountability to the board while improving the board’s efficiency on trending agendas. The number of committees required is determined by the size of the organization. The committee plays an important role in leveraging the directors’ experience, skills, and talents in their respective fields.
To ensure continued improvement, committee members must be committed and passionate about research. As the committee’s ability to address emerging trends is affected by numerous factors, members must embrace a collaborative mindset in facilitating the best board decision. Boards leverage different types of committees, which are:
- Standing Committee: The committee is key to the operational and policy-making processes of the board. It scrutinized the operations of the organization and set priorities to facilitate the board’s making informed decisions.
- Task force or Ad hoc Committee: the committee is set up to address a board challenge on a case-by-case basis. Its mandate is limited to specific challenges, and it is dissolved soon after concluding its findings.
- Advisory Committee: This type of committee is called upon for technical support. As a board advisor, a group of experts is engaged. Good governance practices recommend its composition be made up of former board members with a wealth of knowledge on the matter.
- Steering committee: The committee is critical when executing a strategic project. The committee ensures all stakeholders have room in the project and reports directly to the board.
Boards are obliged to determine the number of committees that ensure their optimal functioning. A clear term of reference facilitates additional committees without abdicating a board member’s responsibilities, which is acceptable in the organization’s best interest. Good governance practices recommend that committees be guided by these principles:
- Establish committees on apparent issues that are complex and/or numerous to handle at the board level.
- Do not supplant a director’s responsibility
- Utilize board members’ expertise, time, and commitment
- Committees meet regularly before board meetings
- Ensure board members understand the various committee mandates; at least two directors and one staff member are members of each committee.
- The chief executive should be an ex-official on the board and committees
Board committees act independently in fulfilling their mandate. Committees play a central role in ensuring the board realizes its mandate effectively and in a timely manner. In conclusion, the committee’s role makes the difference in successful board functions and organizational progress.