Board members are important in determining the future direction of a company, helping to foster accountability and controlling it. However, managing a large group of people at all stages of their careers can be challenging especially in an intimate setting like a board meeting.
Boards face a problem determining how to supervise management without controlling or interfering. It is crucial that board members understand the difference between higher-level policies decisions, and lower-level management policies. It’s also helpful if the board has a good relationship with management and has clearly stated the ways it will communicate its discussions with management.
To facilitate this an effective practice is to schedule regular phone calls with board members for 7-10 days prior to the next board meeting. This allows the board members to preview any issues that are likely to be on the agenda and ensures that any bad news isn’t delivered for the first time at the time of the meeting.
Another important aspect is to concentrate on drafting policies that define the responsibilities of the management, the board and medical staff. Effectively implemented policies reduce the amount of “busy work” at each board meeting. This allows time for strategic work.
It is essential that the board includes members with a wide range of expertise in all areas of the business. This includes finance, sales marketing, operations and finance. It is also helpful when some of the members have expertise in other areas than healthcare. This will allow the board members to gain new knowledge and boardofdirectors.info/governance-frameworks-and-standards-in-different-countries/ make most effective decisions for the business.