Governance is about how well an organization is being run and if set upright, it should effectively oversee the achievement of the business.
Participative board: Governance provides monitoring, measuring, and enforcement mechanisms to corporate management. The more complex contemporary organizations become, the broader scope of corporate governance turns out to be. The effective board of directors keep evolving and actively participate in their vision to guide and advise corporate management, steering the company in the right direction. Vision should have a direction which sets in clarity. A visionary board can navigate to the deep reality and lead more effectively. In fact, vision is an integral part of the directorial role. In most cases, it must be a shared, collaborative vision, because the board of directors which is responsible for setting the vision for the enterprise is a plurality, not an individual.
Due to the increasing pace of changes, vision comes to those who exercise themselves to understand what they hear, as they listen; to perceive what they see, as they look. As they develop full participation at the moment, so does the perceptual envisioning dexterity, expanding reception and reach. The corporate board needs to be more than a rubber stamp. Their role is to pull management out of the trees to see the forest by enhancing governance disciplines. Participative boards not only oversee the strategic plan of their organization, but also co-develop the corporate strategy, set good policies and positive culture tones to lead the transformative changes. The board needs to be engaged, and at the most senior levels to help influence and shape the business of the future.
Proactive board: The corporate board's role, in large part, is to make good decisions that enhance the value creation for the organization. A proactive board has a good understanding of the organization's strategic direction and its strategic alternatives: it is more engaged in overseeing the dynamic digital strategy-execution continuum, and determining suitability, adequacy, viability, of strategic planning. It's not only about now but also about the future and that means an open mindset to change with a proactive attitude.
A proactive board sets the tone for guiding and shaping a proactive organization that adapts to change smoothly. From GRC perspective, being proactive definitely means keeping abreast of standards and auditing to all regulations that may affect the company. It is a continuous process that keeps you current and diminishes the outcomes of not being compliant; set a common process to deliver real-time accountability and transparency across regulatory areas with a common system of record to monitor regulatory change, audit and measure the impact, implement appropriate corrective actions, update policies, and monitor performance periodically. The boards need to focus on their own performance as well as the performance of the management team; and, that performance is not limited to financial performance, but also to the firm's performance in creating value for employees and customers.
Progressive board: The BoD role sets the top leadership’s tone for progression and affects most through cohesive communication, congruent behavior, and continuous endorsement of the change to keep the momentum. The difference between a progressive board and a compliant board comes from altitude, attitude, and aptitude that drives continuous progress and improves the organizational management maturity. The progressive view of the corporate board in a collective setting can sustain a balance of diversified perspectives. Progress itself is a change, either by individual or group efforts or induced by environmental and cultural tangible and intangible force.
The first principle of building a progressive board needs to be open-minded, foresightful, knowledgeable, innovative and committed in order to contribute to strategy oversight and provide management advice when required effectively at all times. High quality leadership is a unique combination of mindsets and behaviors that develop and achieve high quality and meaningful results over a sustained period of time. A progressive board is built based on advanced mindsets, global breadth for competitive judgments and progressive guidance or instructions.
Governance is about how well an organization is being run and if set upright, it should effectively oversee the achievement of the business. The fitting BoD is participative, proactive, and progressive, demonstrates mental toughness, fresh perspective, and in-depth business understanding in order to set the right leadership tone and good policies, influence corporate cultures, identify & develop talent, and lead change effortlessly.
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