The primary function of a board is to oversee the strategic goals of an organization and delegate its day-to-day functions to the executive team. However, many business owners are unable to comprehend how a board of directors can be effective if they are self-confident entrepreneurs and eager to run their own show.

As the number of searches for “board governance tips” grows, it’s evident that this is an important issue for business leaders of today. This might be due to recent scandals which have brought attention on corporate accountability, or perhaps the fact that poor governance on the board can cause disaster.

One of the most important guidelines to board governance tips ensure effective governance is that boards should always be neutral when they make decisions. This means that they should not consider any external interests that may influence their judgment, whether they be personal beliefs or friendships with fellow directors. They should also avoid favoritism and only give posts to friends and family in the event that they are the right fit for the organization.

A well-organized agenda can make any board meeting more efficient. It must be clearly divided into informational, actionable and strategic discussion categories. This will streamline the board’s discussions and help save time, as less time is spent on non-controversial topics. Similar to committee suggestions smaller, non-controversial action items should also be put together into a schedule of consent to allow them to be approved with simply a majority vote.