Authors: Jens Van Lathem and Davy De Laeter
Good governance means, on the one hand, taking into account a number of rules and laws about how this should be done (what we define as the ‘hard side’ of good governance). But the soft, human side also deserves full attention: the board is a body that, with the necessary care and attention, becomes a true partner in achieving your mission together. Clear agreements and a clear division of roles are crucial in this, but so too are the interaction and well-being of each individual and the group as a whole.
The business frameworks (or hard side): which rules do we establish?
Term & succession
We start at the end. How long may directors actually serve on such a board? It can become quite comfortable. Directors build a bond with the organization, management and staff. But over time, the fresh and objective view of the organization may fade. In the codes for good governance, the proposed maximum terms vary. Evaluation and (self-)reflection are certainly appropriate after more than 10 years. Is it then not time to think about and work on a changing of the guard?!
Liable? Participate actively in policy-making!
Directors can be held liable for management errors. You can insure against these risks to a certain extent. Above all, let it be a motivation to involve all directors and to count on regular attendance at board meetings. If necessary, you can organize (sub)meetings specifically focused on topics in which individual directors have expertise and experience, so that they can participate fully in the debate.
Employer role
If there are staff, the board also has a role to play as employer, at least in relation to management and, in general, staff policy. Depending on the context and the subject, this role can be directive, advisory or coaching. In any case, the board, together with the coordinator or management, is responsible for creating a healthy working environment. Exchanging information is crucial here. Clear agreements on the different roles and tasks of the board and management are also helpful and can be laid down in internal regulations or another public document.
The human dynamics (or soft side): how do we interact with each other?
Composing your board effectively
Do you know why certain people sit on your board and whom you can rely on for specific feedback and as a critical sounding board? It is tempting to compose a board mainly on the basis of competencies and experiences that are relevant to the nature and objectives of the organization. These perspectives are of course important, but other competencies (finance, HR, legal knowledge, etc.) and experiences are at least as important for an effective board. Just as the environment in which your organization works is diverse and multifaceted, you should strive for your board to be as much a reflection of your environment as possible.
Meeting culture
Timing, monitoring energy levels... Good governance also means good meetings. Take into account the available time and the commitment of directors when planning meetings. In any case, plan them well in advance to take other obligations into account. These are just a few tips to make every board meeting an energizing experience rather than an energy drain.
The role of the chair
The chair acts as the coach of the team of directors. A good chair combines the capacities of active listening and connecting with a strong ability to achieve synthesis and consensus. He or she keeps a finger on the pulse of what is going on within the organization and in the board team, regularly checks in with management and thus keeps the ship on the right course.
