Every organization has one aspect that depends on the attitude of the CEO and team members might become its integral asset. In case of thorough preparation, this might skyrocket the chance of the organization’s success in any kind of activity.
No more intrigue. It’s all about a board development committee. Thanks to the board members’ knowledge, experience, and passion, every organization might succeed in its performance.
What is a board development committee?
A board development committee is a part of a corporate organization with a goal to ensure the excellent performance of all company operations. Among the responsibilities are:
- providing shareholders with timely and accurate financial reports
- incorporating new board systems into the operations
- recruiting and electing new board members
- monitoring the implementation of work plans
Development committees act as a tool that takes care of organizational and monitoring aspects. This way, the rest of the board members can focus on other, no less important, tasks.
The main areas of board development
Development is not a straight line but a vector. And just like a compass, a board development committee chooses direction, or areas, for company improvement. Let’s look into the main areas for board development:
A company is always about people standing behind it and turning their knowledge and expertise into results. Their efficient collaboration brings new ideas to the organization and ensures the success of their work.
That’s why the development committee should work on improving the selection of qualified team members that can contribute to the company. Additionally, one of their main duties is to conduct team meetings, which allows employees to improve their professional and social skills.
2. Risk management
It is crucial for organizations to assess the risks they might face in different departments. The board development committee should identify the already existing and future risks in achieving the company’s strategy or implementation of the annual business plan.
3. Strategic planning
First of all, this area includes the analysis of strengths, weaknesses, market opportunities and threats (SWOT). It also includes the assessment of demand and customer satisfaction.
Based on the data gathered, the board development committee works to further the company’s development strategy that leads to the successful implementation of its mission.
4. Board leadership
The development committee also evaluates the potential board members. In this area, its main task is to improve the processes of nominating and selecting new candidates. The committee also provides future members with training, mentoring, and guidance to meet the board’s criteria.
The issue of data protection has become constant nowadays. According to Gartner insights, companies spent more than $123 billion in 2020 to protect their data from cyberattacks, and this figure is expected to increase to $170.4 billion by 2022.
The development committee always looks for secure ways of storing and sharing information between board members and shareholders. For example, it’s on the lookout for efficient board software that enables them with the desirable security.
6. Corporate culture
Ensuring a positive atmosphere in the workplace is vital for development committees. Firstly, they should identify the desired culture and discuss and promote it among team members. Once promoted, the committee needs to keep an eye on the implementation of the culture.
An effective way of doing this is by conducting meetings for staff members to improve the company’s morale and culture. Moreover, the committee can occasionally survey the employees to get feedback on the current state of culture.
Necessary qualities of a board development committee members
The personal qualities of board members directly affect the success of any board’s activities. Therefore, it’s vital to prepare a detailed development committee job description while searching for new members.
Logically, qualities needed for corporate and nonprofit board development committee members differ. Still, there are always some universal qualities that are mandatory for any development committee.
1. Competence in a specific area
The expertise and experience of board members are the pillars of every development committee. Having people with technical or financial knowledge significantly increases the chances to succeed in most board actions.
That’s why it’s beneficial for any organization to include expertise in the particular sphere as a requirement to its development committee job description. Many organizations follow this tip and add such specialists as attorneys to the board.
The organization’s performance is poorly affected by the ability of board development committee members to see the primary goals and the ways to achieve them. It’s crucial as some board members might need support or guidance from their colleagues.
What can considerably improve the effectiveness of development committees is having a member with SEO experience on board. Such a person knows the specifics of encouraging and leading a team.
Being one of the board development committee members means working for the betterment of the organization. Therefore, every team member must put the business interest above any others, especially individual ones.
Conflict of interest is what everyone in the development committee should strive to avoid. Working side-by-side with a family member or spouse welcomes personal issues to influence an organization’s board committee decisions.
If board development committee members don’t show deep interest in the organization’s activities, this harmfully impacts its general well-being. Lack of enthusiasm leads to lower efficiency and effectiveness.
On the other hand, board members with a passion for their activities invest much of their time and energy, which may inevitably lead to the success of the overall development committee.
Duties and responsibilities of the committee members
Running any type of organization is hard work requiring close-knit teamwork. If all of the board members carry out their duties conscientiously, every working process should lead to general success.
The only possible drawback of this working machine is when members don’t fully realize their development committee responsibilities. Generally, types of duties might vary depending on the position a team member holds. However, there are some universal responsibilities for every board member.
Setting up the clear mission
Establishing the concrete purpose is one of the most vital development committee responsibilities because it affects creating all the other tasks. As soon as the mission is clear, team members can create a list of actions needed for its implementation.
Board members should do regular checkups of the organization’s products or services, as well as analyze the market and its competitors. That’s why it’s one of the crucial development committee responsibilities.
Voting and selecting members
For the whole board to work effectively and efficiently, it’s crucial to make up the team from the right people. Because of that, selecting the appropriate candidates from a huge number of applicants is on the list of important development committee responsibilities. Besides that, board members also have to vote to appoint the Executive Director.
Monitoring financial activities
Being a board development member requires some finance experience. Obviously, team members don’t have to be financial experts, but they need basic knowledge of required paperwork and transactions.
As far as any organization’s activities are closely related to the financial aspects, such as monitoring funds, this also goes to the needed development committee responsibilities.
- A board development committee is a vital organizational tool that manages and monitors aspects of all activities.
- A skillful and competent board development committee focuses on teamwork, risk management, strategic planning, board leadership, cybersecurity, and corporate culture.
- Qualities that are highly needed for board development committee members are expertise in specific areas, integrity, dedication, and leadership.
- The main development committee responsibilities are establishing a mission for the organization, managing and monitoring organizational and financial activities, and selecting new members.