The board delegates the authority for operations to the management through the Chief Executive Officer. The board supervises management in the execution of the approved strategic plan and evaluates the performance of management in the context of the goals and time frame outlined in the plan. Management Development . The board supervises the selection, evaluation and compensation of the senior management team. In the transition from a small, growing entrepreneurial organization to becoming an established institution, governance ensures that the company survives.
Governance moves an institution beyond dependency on the visionary.
The board should consist of members who have a diversity of skills, including financial, legal and managerial expertise, to give effective guidance to senior management and to critically analyze management's plans and reports. There is no magic formula for board composition. The selection criteria should arise from decisions about the role of the board and how it will carry out its role. The optimum number of board members Mechanisms to evaluate the contributions of individual members Once the role of the board is determined, then it is possible to fill in the gaps of the existing composition. If board members represent particular constituencies, they may be unable to act as a member of the board in the interests of the institution, but instead will be apologists for other interests.