The six elements of successful Board of Directors

Friday, July 8, 2022

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The Board of Directors, having a “heavy” role to maintain and develop an organization, must work well as a team. The six elements that lead a Board of Directors to success are mentioned by Mr. Giorgos Karlaftis, Corporate Board Member of Adus, pointing out that a Board of Directors is not just a group of high-performing individuals, but a balanced team with complementary skill sets and has a culture that allows its members to work together to make the most effective decisions.

 

According to Mr. Karlaftis, the six elements that make a Board of Directors successful are the following:

 

COMMITMENT: Even if being a board member comes with many benefits, including a lucrative salary and a more flexible career, it is certainly not an easy path. Board members should demonstrate their commitment to their organization and be willing to spend hours out on “the street” and in the conference room. If a member does not respect the weight of his/her responsibilities, may cause animosity among members and can derail efforts.

 

KNOWLEDGE: Board members must be knowledgeable. This applies to the most conventional areas of knowledge, such as corporate governance, risk management and financing, as well as knowledge of the industry in which their organization is involved. This does not mean that they need to know the field of activity in which their organization is involved by heart, but it is essential to have a detailed understanding of the terminology and procedures.

 

WILLING TO LEARN: While board members will carry knowledge gained through experience and expertise, they should be open to acquire new skills and be committed to continuous knowledge. With new changes happening in the business world at a rapid pace, board members need to show that they are able to keep up with the changes and commit to personal growth.

 

COMMINUCATION: In order for board of directors to perform to the maximum, their members should be able to communicate effectively with each other. Effective discussion in the conference room is a strategic tool that can be used to encourage insightful evaluations and correct decision making. Lack of effective communication between board members can lead to bad decisions, dysfunctional behavior and weak results for an organization.

 

PASSION: If the board is not deeply interested in the very purpose and mission of the organization they represent, its value is likely to be minimal. While the basic need is to make decisions, it is not the only area where members need to focus their time and energy. Board of directors should be passionate about their mission and dedicated to helping the organization move forward.

 

MENTAL RESISTANCE: Board members should always be prepared to take on difficult issues and work through conflicts. There may be difficult discussions or decisions that need to be made and they need to demonstrate that they can handle such issues objectively and with conviction.

 

You can also read the article in the Athenian - Macedonian News Agency by clicking at the following link:

https://www.amna.gr/business/article/659418/Ta-exi-stoicheia-pou-odigo