The 14 Key Tasks of a Board of Directors
You may well have seen many directors of large public companies being held to account in recent times, Fletchers springs to mind, with the result being that the Chair and other board members often step down in light of poor performance, loss of revenue and reputation and tardy reporting.
What then, you may ask, are the responsibilities and roles of a board of directors??
These of course vary from organisation to organisation, but the guidelines below should help you to better grasp what is required of you if you are thinking of becoming a board member.
The Board of Directors key responsibilities are:
1. Appoint a Chief Executive Officer (CEO) (or equivalent depending on the organisation)
2. Set performance objectives, monitor and review performance of the CEO
3. Decide the organisation's mission/vision, strategic direction and goals
4. Monitor performance of the organisation against strategies, plans, goals and objectives
5. Approve the annual business plan including financial, human resource and quality improvement goals and organisation wide strategies
6. Succession planning for future board members and the CEO-ensuring the board has the best mix of competencies
7. Defining, development and implementation of policies for governance and delegation to management policies
8. Perform their fiduciary responsibilities and ensure those obligations are met
9. Review and approve major investments
10. Ensure major risks are managed
11. Ensure compliance with relevant laws and regulations
12. Ensure compliance with a Constitution (if one exists)
13. Ensure ethical standards and practices for the organisation, operations and its people
14. Ensure the organisation fulfils its obligations to employees.