The board’s responsibility is to govern the company by exercising vigorous and diligent supervision of key areas, including strategy and risk. It cannot, however, micromanage the company’s operations by taking over management’s responsibilities. These responsibilities are meant to help executives and the CEO deliver value for shareholders.

Boards need an established structure and governance structure to be able to execute their tasks effectively. This includes a clear definition of roles from the chairperson down to directors individually as well as a process for decision-making which is established to determine the priorities.

Additionally, a sound board governance framework requires a well-rehearsed process for arranging meetings and agenda items. It also provides a solid governance framework that outlines clearly the function of the board and its relationship with management. The framework also contains an explicit description of the board’s governing values and standards, including honesty, transparency and good communication.

The board should also have a clear plan for selecting and establishing a CEO and overseeing succession planning. It should have a plan to address urgent issues and be prepared to shift its focus when required. The board’s governing practices must be aligned with the business environment and the board needs to be in a position to anticipate and respond to the changes that are taking place in today’s fast-paced and highly complex environment. Board members should devote a lot of time and energy to their work as board members.

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