The key to successful governance is not just establishing effective processes and structures but also exhibiting appropriate behaviors in building trust, creating an ethical culture, and communicating with shareholders. When boards are able to do all this well, they can contribute real value to health care institutions in keeping their operations on track and pushing forward for the benefit of all citizens.
Effective boards have a clear, solid structure that clearly defines their responsibilities and duties. This includes defining roles for the chairman, chief executive officer, each of the directors and their committees. Structures which are clearly defined allow directors to focus on their areas of expertise, and to work together as a team.
The board must develop a detailed plan to govern the company. This includes identifying the most pressing issues as well as setting strategic goals and formulating strategies for risk management. It is also required to make sure that it has the proper capabilities and knowledge to perform its responsibilities, for instance by ensuring there is a mix of relevant skills on the board and making sure it has the necessary experience in the field.
A reliable and strong board of directors will possess an excellent level of competence with the necessary skills and experience that can assist in managing key risks and contributing to the success of the business. It can handle the different demands and expectations of all stakeholders whether employees, customers or investors. This will require a strong strategy and a clear understanding of the company’s objectives and values.