The key to effective board governance is not only setting winning structures and processes but also displaying the appropriate behavior in building trust, fostering an ethical culture and interacting with shareholders. When boards are able to do all of these things effectively, they can add significant value to healthcare organizations. They can ensure they stay on the right track and propel them forward, for the benefit of the public.
Effective boards have a clear, solid structure that defines their obligations. This includes defining the roles of the chairman, chief executive officer and individual directors and committees. Having well-defined structures makes it easier for directors to focus on their specific areas of expertise and allow them to collaborate as a team.
The board must develop a detailed plan for governing the organization, which includes identifying the most pressing issues, setting goals for strategic development and strategies for managing risks. It is also required to ensure that it has the experience and abilities to perform its role. For instance it should mix relevant skills and experience in a particular field.
A reliable, solid board will have high levels of expertise, skills and experiences that will enable it to manage the most significant risks and contribute to the success of the company. It can handle the various demands and expectations of all stakeholders whether employees, customers or investors. This will require an understanding comprehension of the company’s core values and goals, as well as a well-planned strategy to achieve them.