Board of Directors Scope

Direction on the Most Important Board of Governance Practices

Anyone assuming the chairman of the board role takes on a tremendous corporate governance fiduciary responsibility. Frequently they take on this role out of a commitment to serve and a desire to see the organization succeed. It is within this spirit that the chairman of the board recognizes they must follow good corporate governance on behalf of all stakeholders, and set out on a path to identify and implement best practices for the board of directors. This path is called the Board of Directors Scope.

Corporate governance is about setting policies to give overall direction to the company to ensure it has adequate oversight and resources to fulfill its intended purpose. Good corporate governance sets clear expectations and measurements for the organization, and holds the management team accountable to those outcomes. At first glance, this undertaking appears overwhelming to a newly-minted chairman of the board, but fortunately can be distilled down into a manageable process. It begins with the underlying key concepts, which form the foundation of any best-in-class corporate governance program:

Board scope can be boundless depending on the circumstances, but generally focuses on oversight activities to verify the business and its senior team are operating within prearranged guidelines. The chairman of the board should consider establishing a regular cadence of review for the following areas while still allowing flexibility to add or substitute other topics that may arise as business conditions change.

In conclusion, we have covered the board of director scope. It is intended to provide the chairman of the board direction on the most important corporate governance practices to put in place.

Learn what a chairman of the board should look for when assembling a board of directors for the first time. Click here.

Mark Richards is the retired Chairman and CEO of Appvion, Inc. headquartered in Appleton, WI.

Mark is now President of Meade Street Advisors, LLC a board governance, executive coaching, and strategic planning consulting business headquartered in Fort Lauderdale, FL.