When Britain’s economy recovers, it will likely be thanks to the capability of company boards. These boards will need to offer strong direction within the commercial sector for those with enterprising talent. This is according to Dr Neville Bain, the Chairman of the Institute of Directors.
This statement comes after recent comments made by the Bank of England which warned that the economy’s recovery will likely be slowing down. Bain, and many other experts, have suggested that strong leadership from businesses in the U.K. will be the key to a speedy and sustainable recovery.
The IoD has released new guidelines in The Effective Board which take into account some of the things that have been learned throughout the recession. Rather than focusing on legislation and regulation, the guidance focuses on how successful boards can help with the economic recovery. Bain has stated that a board must “do better” no matter how well it is currently doing. He has also stated that smart risk-taking is extremely important, with the best boards neither “risk-averse” nor “reckless” when making decisions.
The Effective Board details some of the characteristics of the best and most successful boards. Having good people, a good strategy, and the right skills is essential when forming a good board. Both values and leadership are also important, with “good governance” being one of the biggest ways to have a successful board.
Bain has also said that “balance”, “annual meetings”, and an efficient system that takes into account “risk management” are three things that will help build boards that can help the economy.