Modern corporate governance theory offers companies quite a few effective strategies to choose from. Some of them have not lost their relevance for several decades, others have emerged in new business conditions. But all of them have a common feature – they are flexible enough to be implemented and changed under specific conditions of work in each individual company. We suggest expanding our knowledge of corporate governance models and become acquainted with the hybrid board of directors in order to evaluate its main pros and cons, and understand how it is suitable for implementation in your company.
What is a hybrid board of directors?
A hybrid board of directors is a model of a governance structure in which some members attend meetings in person, while others use software for this purpose. This model of board organization became popular during the pandemic, but they are in no hurry to abandon it, even if external working conditions make it possible to return to the usual work rhythm. This is not surprising, because this model of work organization has several advantages:
- Convenience – it is necessary to collect in person in the office board quorum, because you can use special programs and any user devices;
- Efficiency – instead of spending time on a trip to the office and preparation of the room for meetings, it can be used for better preparation for the meeting;
- Adaptability – no need to find meeting times that will suit absolutely all board members – some will be able to join the meeting using software.
The hybrid model of board organization gives the opportunity to make the work schedule more flexible and resilient to external changes. If there is an opportunity, you can gather all board members in a conference room; if not, you can use a virtual meeting room.
What makes a good board of directors: a few observations
A hybrid board of directors is able to ensure the normal efficiency not only of its own work, but also of all the other structural parts of the company. The use of such a model of management and workflow makes it possible to maintain the necessary performance of the company without losing value to the market. At the same time hybrid models of management provide a wider field for implementation of unique techniques and strategies of workflow organization, because the regulatory framework is not limited to corporate forms of organization.
In order for a board of directors to remain effective with a hybrid model, certain tactics must be followed to implement it:
- Ensure that the regulatory and statutory requirements for company operations allow for this form of workflow organization;
- Use software that can ensure efficiency and safety during online sessions even with a large number of participants;
- Develop clear guidelines for the implementation and use of the hybrid board model, which will clearly spell out the rules of the board, the rights and responsibilities of its members;
- Don’t forget about the requirements for organizing meetings – sending out notices to meeting participants on time, creating an agenda, conducting necessary polls, and so on.
If you are just thinking about implementing a hybrid board model, be prepared that the first meetings may disappoint you a bit. Don’t give up on the idea beforehand – just consider your mistakes each time you plan your board meetings so that you get an effective system at the end.