“Board and executive leaders need to work together based on mutual respect, trust and commitment”. In the light of this statement discuss in brief the relationship between the Board and Executive Management.
CS Professional · Ethics, Governance and Sustainability · PYQS · June 2018
“Board and executive leaders need to work together based on mutual respect, trust and commitment”. In the light of this statement discuss in brief the relationship between the Board and Executive Management.
Answer & Explanation:
Yes, it is true that the Board and Executive leadership need to work together based on mutual respect, trust and commitment. The Board provides counsel to management and should not get involved in the day-to-day affairs of the organization. Clear expectations for the board and the director need to be established and maintained, because a board that is overly active in management can inhibit the organization's effectiveness. The Executive Management can help the board govern more and manage less by adopting the following three methods: Use a comprehensive strategic plan that has been developed in conjunction with the board, and supplement it with regular progress reports. This will keep the board's sights focused on the long term goals and mission of the organization. Regular reports will keep board members apprised of progress toward organizational goals, and provide part of the basis for evaluation of the executive management. Provide the board with relevant materials before board meetings, and explain why the materials are coming to the attention of the board. Let board members know how specific agenda items relate to the organization's larger mission, and what kind of action or discussion is desired of the board on each item. Facilitate board and board committee discussions so that the board stays focused on the larger issues. Refer to set policies that define the limits of the board's decision-making power, and strive to engage the board in a dialogue among themselves that leads to consensus-building.
Topics: Corporate Governance
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