The role of the board is to oversee the business by exercising a vigilance and thorough surveillance of key areas including strategy and risk. But it cannot also manage — or even micromanage the company’s operations by encroaching upon the management’s duties, which are designed to assist the executive and CEO provide value to shareholders.

Boards must have an established structure and governance framework to do their job effectively. This includes a clear definition of roles from the chairperson to directors individually as well in a decision-making process which is established to determine the priorities.

Furthermore, a strong board governance framework requires a well-rehearsed process for planning meetings and agenda items. It also includes a robust governance structure that outlines clearly the function of the board and its relationship with management. The framework includes a declaration of the board’s governing standards and values, such as integrity and transparency.

The board should have a clearly defined strategy for identifying and forming the CEO and overseeing succession planning. It must have a specific plan for how it will address urgent issues that occur and be prepared to shift its focus and activities when the need arises. The governance practices of the board must be in sync with the business, and the board should be able anticipate and respond to any changes that happen in the current fast-paced and highly complex environment. Board members must dedicate much of their time and energy to their board work.

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