What is board management? Unlock the meaning for education, government & corporate boards
If modern organizations do nothing else, they must prioritize building a well-managed board. Whether it’s a school board, a government agency, or a conglomerate, the board of directors is the foundation for everything that follows: success or failure, risk or opportunity. That begs the question: What is board management?
Though there are distinct differences between boards in education, government and corporations, there are also similarities. Understanding how to manage a board for one can reveal tools and tips that easily apply to the other two. Here, we’ll break down:
- What board management is for corporate boards
- How board management varies in education and government
- Key resources for each type of board
- The role of technology in effective board management
What is the meaning of board management?
Board management refers to the processes and practices of overseeing a board of directors’ operations, including governance, decision-making, compliance, communication and strategic planning. It ensures that the board functions effectively, aligns with organizational goals and fulfills its fiduciary duties.
Consider the well-prepared agenda that keeps discussions focused or the financial reports the board receives in advance to make clear, fiscally responsible decisions. Effective board management is the catalyst for both.
How do you manage a board?
Managing a board is like being a coach. People like the board chair must define clear roles, communicate strongly and keep meetings on track to shape the power into a powerful force for the organization. Here are the key steps to get there:
- Define roles and responsibilities: Clearly outline expectations for board members, including governance duties, decision-making authority and fiduciary responsibilities. Ensure each member understands how their role contributes to the organization’s success.
- Set a strong governance framework: Develop bylaws, policies and ethical guidelines to provide structure and accountability. Promote compliance with legal regulations and best practices to maintain transparency and credibility.
- Facilitate effective meetings: Plan structured agendas that prioritize strategic discussions, distribute materials in advance and keep meetings focused. Encourage active participation and ensure decisions lead to clear action items.
- Foster clear communication: Keep board members informed between meetings with regular updates, progress reports and relevant industry insights. Use digital tools to streamline communications and encourage engagement.
- Support board development: Provide ongoing education, mentorship and training to strengthen members’ leadership skills. Conduct periodic assessments to identify areas for growth and ensure the board evolves with the organization’s needs.
- Encourage strategic decision-making: Use data, expert insights and long-term planning to guide board discussions. Encourage members to think beyond immediate challenges and focus on sustainable impact and growth.
- Monitor performance and accountability: Regularly evaluate the board’s effectiveness by tracking key performance indicators, reviewing governance practices and ensuring members actively contribute to the organization’s success.
- Foster a positive board culture: Cultivate an environment of trust, collaboration and open dialogue. Foster diverse perspectives, recognize contributions and address conflicts constructively to keep the board functioning as a united team.
Board management tools
Managing a board is as much about policies and processes as tools. The proper board management tools streamline governance, improve collaboration and enhance decision-making through features like:
- Secure board document management: Store, organize and access board materials in a centralized, cloud-based platform with robust security.
- Efficient board meeting management: Create and distribute digital agendas, automate meeting scheduling and track action items to streamline decision-making.
- Real-time communication and collaboration: Use integrated messaging and annotation tools to keep board members engaged and informed.
- Advanced governance and compliance: Stay on top of regulatory requirements with built-in compliance tracking and audit trails.
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Discover moreWhat is an example of board management?
Founded in 1946, ELCO Mutual Life and Annuity is a trusted insurance and financial
services provider that has been committed to serving policyholders. Its governance structure was steady and familiar, with directors who had deep historical ties to the organization. While this brought stability, ELCO also needed to modernize its board practices and infrastructure to keep up with its ambitious growth goals and build resilience.
When Eric Myers joined ELCO as General Counsel and Corporate Secretary in 2020, one of his first tasks was to enhance its maturing board management systems and processes to meet future demands.
“We were using one file-sharing product, which just didn’t work well. I would get calls and emails from directors saying they couldn’t access or open the files,” he says.
Myers executed a series of reforms aimed at revitalizing the board’s function and expanding its capabilities, including restructuring the board itself. However, adopting Diligent Boards, a modern board management software, fostered board member self-sufficiency by
providing easy access to essential documents through a centralized resource tab. This “one-stop shop” has minimized reliance on Myers for basic inquiries and empowered directors to be more independent and prepared.
“I can tell much better than I used to how prepared people are... Just based on how the meetings go,” Myers says
Board management for corporations
In corporations, board management is overseeing what the board does and how they do it. This responsibility spans the entire lifecycle of the board and its directors — from succession planning and recruitment to onboarding and continuing education.
Though board directors are typically experts in their own fields, that doesn’t mean they’re experts in the corporation they serve. Board management fills those gaps, blending directors’ unique skills and expertise with the corporation’s strategy to turn disparate directors into a well-oiled machine.
In this way, board management is inextricable from board effectiveness; the better managed a board is, the more effective it will be at setting a corporate strategy and taking the necessary steps to achieve it.
Resources for your corporate board:
- Analyze challenges and opportunities facing boards: The board of directors is indispensable in overseeing the organization and making critical strategic decisions. However, modern boards face challenges and opportunities that require board management to navigate.
- Define board of director roles and responsibilities: The board chair, corporate secretary, and general counsel play pivotal yet distinct roles in corporate dynamics. Understanding those roles is vital to collaboration and success.
- Identify the principles of effective board management: Managing a board requires strategic decisions regarding board composition, leadership, evaluation and more. Navigating that landscape is key to building the transparency and trust that effective boards depend on.
- Utilize board management best practices: Adopting best practices is crucial for streamlining board operations. These include education on risks, prioritizing stakeholder engagement, cultivating agility, enhancing governance and more.
- Consider board management software: As boards mature, they often find that software can enhance their collaboration and effectiveness. However, software only helps if you choose a solution that suits your needs.
Board management in education
Board management in education is not unlike the oversight corporate boards need. Like corporations, board management in education guides how a board governs its institution. Unlike corporations, though, education boards are charged with creating a positive learning environment that attracts and engages its students — a very distinct objective.
Moreover, some educational institutions have a board of trustees rather than a board of directors. Nevertheless, board management gives the board structure so they can effectively lead their institution and win the trust of their community.
School board management
School board members are elected officials. That makes school board management unique because board members are beholden to their community, not shareholders or district staff. The role of board management in schools is to give the community a voice in how schools operate.
School board management allows members to bridge the gap between the community and the district. These include clear governance for decision-making and collaboration, recruiting and onboarding district administrators, and seeking training to shape financial and school policies.
Board management in higher education
Higher education is yet another unique application for board management. Many higher education institutions have boards of trustees — not directors — that shape the institution’s approach to student success. These boards are charged with their institution’s financial well-being and ability to create a positive learning environment for students and the community.
Trustees often require board management like other boards, but fundraising and community engagement are usually additional layers. Board management in higher education gives trustees the tools to foster positive relationships with the community, regularly seek feedback and attract donors to the institution.
Resources for your education board:
- Offer effective governance training for school boards: Governance may not be a well-known topic among school boards, but it’s the basis for everything the school board does. Board management should always start here.
- Understand the roles and responsibilities of school board directors: Board management starts with clearly defining which directors are responsible for what so they each have the support they need to meet expectations.
- Implement best practices for school board member training: School board members may join the board at different times, so each needs thorough training to gain the right skills and context to serve the community effectively.
- Cultivate effective school board members: Each district has unique needs, yet most will find that effective board members have several traits in common. These include a clear vision and a commitment to setting goals.
- Modernize governance management: School boards ready to take the next step should integrate governance management technology that secures communication, promotes collaboration and puts critical tasks on autopilot.
Board management for governments
In government, board management can refer to oversight and governance at national, regional and local levels. Though governments don’t have “boards” like educational institutions and corporations do, the approach of managing good governance and strategic decision-making still applies.
Instead, “councils,” “commissions,” and other groups work to ensure governing bodies remain efficient, compliant and effective at serving their constituents. This can include activities ranging from implementing policies and overseeing the implementation of those policies to navigating the legislative process, managing the budget and offering accountability to the public.
Local governments
Board management in government is distinct from other sectors. Yet, the needs of local governments are even more specific than those of other types of government. Local government includes anything from city councils to the mayor’s office.
Management means cultivating collaboration and accountability between each entity so they can tackle individual responsibilities and seamlessly collaborate on the issues they both touch. Many local governments have management built-in (e.g., the mayor presides over the city council), but governance software can further streamline council/commission activities.
Resources for your government board:
- Understand the importance of efficient local government: Local government is beholden to the voters. A more organized board can work more effectively to tackle issues their community cares about.
- Build public trust: Everything the government does is rooted in public trust. Without it, voter turnout declines, government employees are less satisfied, and social ties erode.
- Strengthen communication: Sharing the correct information at the right time without compromising security is another key way the government can earn the goodwill of its community.
- Employ governance best practices: Government governance differs from other sectors. Getting it right is crucial to fulfilling the government boards’ legal and fiduciary responsibilities.
- Empower your organization with software: Get the deep insights you need to make better decisions that win public trust.
Future trends in board management
Board management evolves rapidly as organizations embrace new technologies and respond to shifting governance priorities. A few key trends shaping the boardroom’s future are:
- Artificial intelligence (AI) and digital transformation: AI is revolutionizing board management by automating routine tasks, enhancing decision-making and improving efficiency. AI-powered tools can analyze vast amounts of data to provide insights for strategic planning, automate board meeting management and improve document management with intelligent search tools.
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Discover more- The continuation of environmental, social and governance (ESG) priorities: Boards increasingly prioritize ESG governance, recognizing that sustainable and ethical business practices drive long-term success. Following suit, board management should consider strengthening corporate responsibility oversight, increasing transparency around ESG metrics and ensuring ethical leadership aligns with investor expectations.
- Cybersecurity and data privacy: More boards rely on digital platforms for board document and meeting management, prioritizing cybersecurity. This has influenced a growing need to protect against cyber threats and data breaches, promote compliance with evolving data privacy regulations and implement secure board portals to protect sensitive information.
- Hybrid and virtual board meetings: Remote boards have reshaped how boards operate, leading to a permanent shift toward hybrid and virtual board meetings. Boards are learning new management approaches, such as how digital tools can maintain engagement and collaboration, further accessibility for global board members and influence best practices for virtual governance to maintain meeting effectiveness.
Leverage board management software to lead with confidence
Board management is the foundation for all board activities. Yet, it must also be dynamic. As the organization’s needs change, so must the approach to cultivating board effectiveness. Now that we’ve explained that blurry “What is board management” and shared some additional resources, what remains is how to manage your board so they’re ready for whatever may come.
That readiness starts with technology. With the right software (for corporate boards or public and elected boards), achieving greater board efficiency that builds trust with constituents and shareholders is simpler than ever. Yet, finding the “right” software is easier said than done.
Choosing free or premium board management software can make the difference between board management that’s your secret sauce, or your biggest headache. Learn more about software and the hidden costs of free options.
