Board of Directors’ Duties: Tip 1 – Purpose of Board

Board of Directors’ Duties: Board of Directors Duites Board Room Empty

Tip 1 – Purpose of Board

There are two main purposes of boards of directors, first to direct the organization, and second to protect the owners’ and members’ interests. Directing the organization includes things like developing a strategic plan, selecting a senior staff person, and being heavily involved in setting and confirming the goals for the organization. It’s the board’s job to direct the organization towards a successful future.

Secondly, it’s important for the board to protect the owners’ or members’ interests. This means risk management, it means having governing policies in place that provide parameters for everything the organization does. It also means reviewing progress that the organization has made towards the goals in the strategic plan and redirecting operations when things are off track.

Almost everything the board does can be summarized in these two purposes. The board of directors directs the organization’s future; the board of trustees protects the interests of the owners or members of the organization and all boards have responsibility to fulfill both purposes.

I wish your board the best as it directs and protects along your pathway to organizational excellence.

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