The True Role of The Board

Have you ever questioned the deeper purpose of the board? What is its true role, and why does it exist in the first place?

The role of a board is often misunderstood, with many assuming its primary function is to enforce compliance and oversee operations, ensuring legal, financial and fiduciary obligations are met. While these responsibilities are important, they do not define the true purpose of a board.

What if governance was far simpler than most people assume? Instead of being bogged down by complex processes and policies, what if these were seen merely as tools; designed to help the board to fulfil its true role: to make the choices that create the future for the communities they serve.

A board is there to make choices. This means identifying possible options and choosing from amongst those options. This choice should continue for as long as it creates the outcomes required and changed if it needs to change. Reporting to the Board, therefor, should be about the outcomes being created, not the activities being undertaken.

The board’s role is to discuss, question, test and choose from the available options, and be prepared to make another choice if circumstances change.

These choices should always have a focus on creating the future. The Board has three key tools to help them create the future.

• First is their vision or purpose. This should be the key filter for all processes, services and products to ensure alignment.
• The second is their strategic plan, which identifies the three or four key things that the Board has to get right in the next few years.
• The last is the reporting structure of both the board agenda and board reports, which should be focused on emerging issues, strategic implications and monitoring of impact.

These choices and their ability to create the future should always have the communities they serve as a key focus. The purpose of your organisation is to make a difference in the communities you serve. These communities will occasionally change as demographics and strategic focus shifts, and need to be continually monitored for the impact your organisation is having.

By focusing on the communities you serve you maximise the possibility of the board being strategic, and minimise the possibility of being self-perpetuating and self-interested. The discussions that this leads to are fascinating, interesting and can truly lead to change in our world – which is why our organisations exist in the first place.

At its heart, a board’s role goes beyond oversight and compliance, it’s about making the choices that shape the future for the communities they serve.