https://boardmanagementsystem.info/what-is-the-biggest-challenge-facing-the-ceo-of-today/

Board composition is the composition of the people that a board selects to oversee an company. This includes the proportion of women and men as well as the proportion of minorities and women and the age of the board members. It also takes into account the amount of expertise available in governance and management issues, such as fundraising or legal risk.

Diversity is a key driver of a well-balanced board, and many boards are seeking new ways to diversify their board members. To determine gaps in diversity, organizations could conduct an audit of current board members and determine the areas where recruitment efforts are the most needed. Diversity is a must in all areas including race and gender to education and age to qualifications and experiences.

In addition to focusing on diversity, a successful board needs matrix can also help boards understand what kind of individuals they require on their board. A matrix is a grid similar to Excel which lists the characteristics of board directors and the competencies required to carry out their responsibilities. This information enables the committee to make a shortlist of potential nominees and then evaluate them based on how they are able to meet the requirements.

A board must be able to balance the interests and needs of shareholders and the management team. This typically means that the board comprises an assortment of outside and inside directors and that the inside directors have experience managing businesses or nonprofits. Boards are also likely to have a chairperson, who leads the committees of the board and oversees the work of the board.