In the words of Miles Templeman, However, any organization is ultimately only as good as those who lead it. The need to pay attention to the election or appointment of board members is as critical as the ultimate success or otherwise of the organization. To understand the importance of the board let us look at their key responsibilities.
Defining the Board
According to Jeremy Barlow, Director of Digital Marketing at BoardEffect, A board is an organized group with the collective authority to control and foster an institution that is usually administered by a qualified executive and staff.
KEY RESPONSIBILITIES OF THE BOARD
1)Cast and sustain the companys vision, mission and core business values
2)Design implementable strategy and structure to help the company realized its vision
3)Commit the authority to manage the company and realize its vision and ensure proper
monitoring and evaluation of the implementation of set policies, strategies, and business plans
4)Act at all times in the best interests of the company as a whole so as to preserve the companys assets, further its business, and promote the purposes for which it was formed, and in such manner as a faithful, diligent, careful and ordinarily skillful director would act in the circumstances Section 279 C.A.M.A., 2004
5)Support and liaise with management on a regular time basis to ensure that policies are implemented.
6)Report the state of the companys affair to the shareholders and regulators.
Straightforwardness, it is important to have an understanding of how strategic focus is charted for an organization. According to section 63, subsection (1) of the Companies and Allied Matters Act 2004, it states A company shall act through its members in general meeting or its board of directors or through officers or agents, appointed by, or under authority derived from, the members in general meeting or the board of directors.
The appointment of a chief executive officer or general manager or manager is an important task of the board since the day-to-day running of the company rest with the appointed person. Before or when such appointment is made, the board through its committee must have engaged in deep deliberation and should set key selection criteria established in terms of JOB ANALYSIS – Job description and person specification.
MANAGEMENT ROLE IN THE EXECUTION OF BOARD STRATEGIC OBJECTIVES
A board of director is presided over by a chairperson or chairman while management is headed by CEO or Managing Director. The management function is primarily to implement the decisions of the board in the best interest of the organization. The management is action-oriented and they support the board in the best possible way at ensuring that long-term development goals and objectives are set for the organization.
KEY RESPONSIBILITIES OF MANAGEMENT TO THE BOARD
1)To provide the board with insight and documented recommendations that are required for board deliberation and decision-making
2)Keep the board informed and educated about development in the industry, on government policy and recent changes.
3)Make operational policies and decisions that will ensure that decisions of the board are carried out.
4)Brief and provide feedback to the board on a regular basis.
5)Ensuring the day-to-day running of the organization including strategy formulation and manpower management.
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