Three Foundations of a Successful Board

The importance of the role the Board of Directors plays cannot be overstated. The Board of Directors’ primary goals are to serve in the best interest of their organization and serve as stewards to guide their organization into the future. Despite differences in how an organization may operate and the industry they serve, every Board of Directors shares similar responsibilities.

While there are many vital roles for a Board of Directors, these three foundational responsibilities will support fulfilling the goals of your organization.

• Establish the Identity and Direction: The Board of Directors is responsible for setting the organizational direction by developing and creating the mission and vision statement. These statements guide the strategic planning process and ensure planning aligns with fulfilling the mission and vision. The mission and vision statements should be reviewed every two to three years to ensure they accurately reflect your organization’s ideal future.
• Allocate Necessary Resources: If an organization does not have adequate resources, it cannot fulfill its mission and vision completely. The Board’s responsibility is to carefully consider the best ways to allocate money and resources for the present and future benefit of the organization’s mission and the individuals they serve.
• Ensure and Support Effective CEO Leadership: When a Board of Directors hires the CEO, they are hiring the person that they most trust to bring the right people with the right skills into the organization to carry out the mission, vision, and strategic plan they have established. Along the way, there is monitoring and assessment of the CEO’s progress. MHS recently discussed the importance of the relationship between the Board and the CEO in an article and webinar called “Fostering the Board & CEO Relationship.”

As an MHS member, you can access governance resources and consulting services supporting your Board of Directors and organization. MHS Consulting services include strategic positioning and planning, Board coaching, and executive search services. For more information, contact us at info@mhsonline.org or call us at 574-534-9689.

Nick Matthews,
Communications Manager, MHS