Board of Directors (BOD) and Its Role for the Company

The role of the Board of Directors (BOD) in a company is often only understood as a line of executives representing protocol tasks. Both from an employee and organizational perspective, a thorough understanding of the attitudes and roles that BOD will carry out is required.

In practice, the BOD contributes to driving strategic goals, assessing executive performance, and taking action where necessary. Decisions made by the BOD can have a long-term impact on a company's growth and reputation. Thus, understanding BOD is very important for the balance and success of a company.

Understanding Board of Directors (BOD)

The Board of Directors (BOD) is an important entity in a corporate structure whose job is to make strategic decisions and oversee company operations. Launching from BDC, BOD was chosen to represent the interests of shareholders and provide direction to executive management. They have crucial responsibilities in establishing a long-term vision, managing risk and ensuring the company operates according to regulations and ethics.

In creating an effective working environment, BDC underlines that BOD requires integrity, courage, and the ability to collaborate with management. The main foundation that must be possessed by BOD must also focus on in-depth understanding of the industry and business within the company.

Attitudes Required by BOD

To create a successful company, it takes a number of attitudes to build a strong BOD lineup. The BOD must have superior attitudes in supporting the company's operational activities, including the following.

1. Diverse expertise: Coming from diverse backgrounds and expertise can bring a richer perspective along with in-depth understanding of various aspects of industry, finance, law and operations.
2. Open communication: Effective communication between executive management is essential to help formulate a better strategy and minimize the risk of misunderstandings.
3. Active commitment: BOD must be able to actively commit and participate in company meetings and activities. This will be reflected when they provide stronger direction and support good decision making.
4. In-depth understanding: Having an understanding of the company's vision, mission, values, and challenges being faced to help design relevant and sustainable strategic plans.

The role of the Board of Directors (BOD) in the Company

The Board of Directors (BOD) has a crucial role in overseeing and guiding the company towards long term success. According to references from McKinsey and BDC, BOD have an important role in making strategic decisions to carry out digital transformation. To ensure sustainable business continuity, BOD also has the following roles.

1. Monitoring management performance

The main role of the BOD in company operations is to oversee the performance of executive management, such as assessing the performance of the CEO and the executive team involved. In order to go according to plan, all stakeholders must be involved in a proactive manner related to the strengths, weaknesses, and all the potential that exists within the company.

2. Risk mitigation

In practice, BOD must also be able to identify and mitigate risks, both legal, financial and reputational, to maintain business continuity. Risks that need to be aware of within the company can range from crisis conditions such as pandemics to scenarios of ransomware attacks.

3. Technology advocacy

In implementing the digitalization process, BOD will advocate for investment in relevant technology. The potential of digital technology and its use must be truly used to reflect digital progress that can strengthen business.

4. Strategic guidance

When implemented for all employees, the BOD must also provide strategic guidance in designing digital transformation plans. They need to understand the risks, opportunities and long-term impacts of these technological changes.

The BOD must know the key metrics that can be used to escalate ideas that can be translated into operational strategies. In this way, every development in the company can be monitored regularly for crucial long-term impacts.

5. Oversee Technology Implementation

The BOD must oversee the implementation of digital projects. This includes ensuring that planned projects also go according to plan. Not only that, it is important to be able to manage the risks associated with developing new innovations so that every decision can provide the expected benefits.

6. Evaluation of the Managerial Team

Not only making positive innovations, BOD also needs to evaluate the management team's capabilities in managing digital transformation. It is necessary to ensure that the entire team involved has the appropriate skills. By taking an active role in supporting digital transformation, BOD can help organizations deal with technological change more effectively.

7. Representing Shareholders

The BOD's role is also to represent the interests of shareholders and work to achieve the best results for all parties involved in the company. Usually, BOD will be nominated by a committee with varying conditions. The terms used for the BOD role may also vary, but the goal is to align new ideas.

Overall, the role of the BOD is critical in guiding the company towards sustainable growth, managing risk and maintaining business integrity. As an organization grows bigger, the role of the BOD is increasingly needed to carry out more complex management.