The key to successful governance is not just establishing efficient processes and structures, but also demonstrating appropriate behavior and building trust, establishing an ethical culture, and communicating with shareholders. If boards can do all of these things effectively, they can add significant value to healthcare organizations. They can keep them on the right track and propel forward, to the good of the community.
Effective boards have a clear, solid structure that clearly defines their responsibilities and duties. This includes defining the roles of the chairman, the chief executive officer, each of the directors and their committees. Structures which are clearly defined allow directors to focus more on their areas of expertise and to work as teams.
The board should develop a detailed plan to govern the company. This includes identifying critical issues, setting strategic goals, and implementing strategies for managing risk. It is also required to ensure that it is equipped with the knowledge and expertise to carry out its responsibilities. For instance it should mix of relevant experience and skills in a specific area.
A solid, reliable board will have high levels of knowledge, expertise, and experiences that will enable it to manage major risks and ensure the success of the business. It is able to manage the various requirements and expectations of the stakeholders such as employees, customers or investors. This will require an understanding knowledge of the company’s values and goals, along with a solid plan of action to reach them.