Board Series: What is Board Governance?

I’ve titled this post What is Board Governance? because I have often heard people ask this very question or a variation of this question.

Board Governance is the job required to be done by the Board of Directors on a board. But before we dive into this a little further, it’s important to keep in mind the following:

  • A board collectively exists to steward the wishes of the ownership (stakeholders) of an organization. If you are a board member, it is imperative that you understand for whom and for what benefit your role exists.

Board governance then, in a most simplified form, is seeking to know the wishes of the ownership (stakeholders), translating that into desired outcomes (Ends), setting empowering boundaries for those hired (CEO) to achieve those Ends, and monitoring to ensure the Ends are being produced. Here is a great little video that teaches this.

How the board builds credibility with its’ owners is by, among other things, establishing how it is going to behave and make decisions – this is usually written as policy. And, by actively understanding and living within their own empowering boundaries/policies, boards are enabled to speak with one voice.

When one or more board members fail to operate within policy, it comprises the integrity of the entire board and can also have detrimental effects on an entire organization. (I could share some stories here that would make you cringe, but that is not the purpose of my post.)

Hope that helps you to understand a little better what Board Governance is, it’s the responsibility of the Board of Directors.

Have a great day!

 

 

 

 

 

 

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: