Good governance entails having a board that is informed and understand the business well. When it comes to Board composition, having members with diverse skills and experiences is key. A board of a hospital for example, should not just have only medical doctors as Board Members. That would be myopic, as their thinking may not give a clear bird’s view of the entire business operations. Having members who are lawyers, accountants, engineers, could make a big difference. Now that you have a Board of directors, do you need Board committees? You may or not, as explained below. The role of…
What is Risk Management?
To understand risk management, one needs to understand the terms; risk and management. Risk is any event that is uncertain whose occurrence has potential to cause a loss or a gain to the business. Traditionally we have confused the word risk to mean causing a loss in which case many organizations have failed to plan and prepare how to handle an opportunity which arises when it has not been expected. But because business is more concerned with the threat of failing than the threat of abrupt success, we concern ourselves more with risk management in the context of managing bad…
Involve the Board in Strategy formulation
The Board has overall responsibility for running the business from the strategic point of view. They are responsible for oversight and risk management. The oversight role ensures long term business success and sustainability. They help ensure that the business or organization has a ‘strategic foundation’ upon which long term viability of the business is anchored. It is like having a strong foundation for the house. The stronger the foundation, the longer the house will stand. Risk management role helps ensure going concern events or incidents with potential to fail the business are proactively anticipated, identified and effective mitigation measures implemented.…
2014 : what is your resolve?
We are two days to 2014. It is the time of the year to consolidate your achievements and plan for the new-year. Many advisers [mentors and coaches] have probably told you to make resolutions for 2014. You don’t need to make resolutions. You need to resolve. Decide, act and never give up. Don’t say I want to reduce weight. Resolve to reduce weight by running at least four kilometers, twice a week; and 10 kilometers (MTN Kampala marathon) once a year. My experience is any exercise that does not involve covering some distance is very ineffective as far benefiting from…
How to conduct the business of the Board
The role of Board is to promote long term success of its stakeholders. This looks at the going concern for the fore feeble future of the business to ensure that the business does not collapse. The board’s business is to look at long term perspectives. Instead of asking how to make profits, they ask how the business will remain competive for many years to come. The board is looking at bigger picture dynamics and how to position the business for unprecedented future success. They are focusing on strategy, how to remain responsive to customer needs and ensure the company meets…
Making an impact on the Board
As a new board member in the business, how do you make an impact and contribution so that your value is more beneficial to the company you are working in? To understand the impact you make on the Board, it is important to know who is a board member, what exactly is the role of the Board and what qualifications to need to become a board member especially in the Ugandan text. Who is a board member? To understand who is a board member, we need to look at the levels of management in a typical company. Traditionally, we have…
