Guidance (#1 -#5)

Guidance #1: Purpose policies set the criteria on what is feasible and subsequently, the CEO strives to meet the set targets. The purpose policy needs to be documented with clarity and facilitate understanding, adding value to the overall wealth creation process.

Guidance #2: A balance is required for discussions to encourage timid members to express themselves and discourage overbearing ones from commandeering the meeting. In spite of the obvious advantages in achieving this balance, it is not often achieved with ease.

Guidance #3: There are several functions which can be described as managerial that board members get too comfortable with. In order for the real board-specific purpose of focusing on the long term to be expressed, board members need to push beyond such functional boundaries. Items like debt collection, capital reports, and sales targets are examples of management-oriented functions which divert the focus from the proactive approach the board needs to steer the organisation towards future success.

Guidance #4: Board activities work best when conforming to industry-best practices. Many codes and principles are available that recommend the various ways a board should be run. Evaluate and find out what you can do to improve current practices and what you can do to tweak or change certain methods.

Guidance #5: The board must have advanced preparation of all items planned out in the agenda, beyond the documents that accompany a meeting. The board members need to express their opinions on this matter, as well as reveal any items that would assist them in this endeavour.