A well-functioning board of directors performs effective work, executing their fiduciary responsibilities to safeguard shareholders’ interests as well as increase shareholder value. This includes safeguarding financial reporting and ensuring transparency of its disclosure and also fostering positive relations between the company and the stakeholders. It also fulfills its broader responsibilities of fostering the development of new ideas, driving sustainability and risk management, assisting culture and talent development and maintaining a balance between operations and strategic oversight.

A successful board does these tasks efficiently and collaboratively through an effective process. The board is well-defined and has clear roles, which are facilitated by the chair and assisted by a solid, organized nominating and succession procedure. Directors understand their role in the board, and how it is connected to the strategic goals of the company. They are willing to speak out and present their ideas at meetings, as well as in other contexts.

A proper mix of diversity board of directors productive work in the boardroom is crucial. The board should reflect the diverse interests of its members including gender, age, ethnicity, skills, and experience. A unified and transparent selection process, which eliminates discrimination or bias, could help to ensure this. The board should also actively recruit new members, and make sure that they are engaged and participating in this process.

It is crucial to make sure that all directors are fully involved in the board’s decision-making processes and that there is a positive, respectable board dynamic. This isn’t easy to achieve, especially as the number of board meetings and agendas will increase due to the increasing amount of time directors spend working on boards.