Conclusion

Great governance requires directors who understand the role of the board. Governance is best thought of as stewardship.

Directors should know and embrace their responsibilities as they enjoy their privileges. The best directors are independent in the deepest sense—attentive, curious, challenging, and unafraid to take action when required. They monitor management and hold them accountable while providing help and support.

Effective stewardship requires a deep understanding of the entity being governed. This is the subject to which we turn next.