The role of the board is to manage the company’s operations by providing vigorous and diligent supervision in crucial areas such as strategy and risk. But it cannot also manage — or micromanage the company’s business by encroaching upon the management’s duties, which are designed to help the CEO and executive team provide value to shareholders.

To perform their tasks effectively boards must have a clear governance structure and framework. This includes a clear definition of responsibilities from the chairperson to the individual directors as well as a process for decision-making that is designed to determine priorities.

A solid governance framework for boards is also dependent on a well-practiced procedure to plan meetings, including the agenda items. It also includes a solid governance system that clearly defines the role of the board, its role and relationship with management, as well as the extent go to website of its authority. The framework includes a statement of the board’s standards and values, such as integrity and transparency.

The board should also have a well-defined plan for selecting the CEO, developing the person and overseeing the succession. It should have a clear plan for how to address urgent issues that arise and be ready to shift its priorities and activities when the need arises. The board’s governance procedures must be in line with business practices, and the board should be able to anticipate and respond to any changes that happen in today’s fast moving and highly complex environment. Board members need to dedicate a lot of time and energy to their work on the board.