Board composition has gained considerable attention in recent years as investors have focused on the importance of the role board directors play in the business. Boards are made up of people who bring their own unique expertise, knowledge and networks to the table. However, the primary objective of a good board is to work together as a group to monitor the performance of the business and support the CEO.
To achieve that goal it is essential that a board be designed to be efficient and well-equipped to fulfill its function. This is usually accomplished by forming a group that can serve as a sounding board and find out the truth.
In general, it is her comment is here recommended that boards comprise members who are first-time members as well as experienced directors to offer an array of viewpoints and knowledge. To achieve this, it's essential to establish an objective framework that lets the nominating committees as well as the board to assess the skills, qualities and talents needed to be the ideal candidate for director positions.
A matrix of the character traits of board members is a common tool that can be used to guide the selection process. It is important to keep in mind that the mere fact that one has certain traits, does not mean that they are the right fit for the job.
In organizations that are relatively new, a special type of blockage could occur when the founders are dominant. They believe they know best and aren't willing to risk changing. This can result in a "founders syndrome" whereby nominating committees do not recognize the need for fresh ideas and a refresh of the composition of the board.