A strong relationship between the board of directors and management is essential for the success of any company. When the board and management work together effectively, they can create a company that is well-managed, profitable, and sustainable.
Here are some tips for boards on how to build and maintain a strong relationship with management in Canada:
- Set clear expectations. The board needs to set clear expectations for management in terms of performance, strategy, and risk management. The board should also provide management with the resources and support it needs to achieve its goals.
- Provide regular feedback. The board should provide management with regular feedback on its performance. This feedback should be constructive and focused on helping management to improve.
- Create opportunities for dialogue. The board should create opportunities for dialogue with management on a regular basis. This can be done through board meetings, one-on-one meetings, and informal discussions.
- Build trust and respect. The board needs to build trust and respect with management. This can be done by being open and transparent, and by being fair and impartial in its dealings with management.
- Support management’s decisions. Once the board has made a decision, it needs to support management’s implementation of that decision. This means giving management the autonomy to make decisions and the resources it needs to implement those decisions.
By following these tips, boards can help to build and maintain a strong relationship with management. This relationship will be essential for the success of the company.
In addition to the above tips, boards can also build and maintain a strong relationship with management by:
- Being involved in the company’s strategic planning process. The board should be involved in the company’s strategic planning process to ensure that the board’s vision for the company is aligned with the management’s vision.
- Appointing directors with relevant experience and expertise. The board should appoint directors with relevant experience and expertise in the company’s industry and business. This will help the board to better understand the company’s challenges and opportunities.
- Holding management accountable. The board needs to hold management accountable for its performance. This means monitoring management’s progress toward achieving its goals and taking corrective action if necessary.
- Creating a culture of open communication. The board and management need to have a culture of open communication. This means being able to discuss difficult issues openly and honestly.
By following these tips, boards can help to build and maintain a strong relationship with management that is based on trust, respect, and accountability. This relationship will be essential for the success of the company in the long term.
This article is for informational purposes only and is not legal advice. Contact us today to discuss your specific situation.