Board Management: Understanding the Role of the Board of Directors

Moving to a new level of business development, internal restructuring of the company’s activities takes place. When creating a hierarchical business management model, you should understand how to use tools to optimize this process. We are talking about board room software, which greatly facilitates virtual conferences of the board of directors, making them more productive. In this article, you will learn about the role of the board of directors, their responsibilities, and the best way to conduct online meetings for big bosses.

What is a Board of Directors for?

With the right development, your company will grow. This applies to the number of employees, the vastness of the sphere of influence, and the scale of production/coverage of the target audience. In some countries, by law, when you move to the corporate level, you are required to convene a board of directors. The following aspects fall under the control of directors:

• creation or modification of existing corporate charters;
• setting long-term goals;
• proper supervision of employees;
• regular financial reporting, including with the help of the board portal software.

Please note: Members of the board are selected and appointed by the shareholders of the company. The main responsibility of the board of directors is to manage the company and maintain its long-term profitability.

As part of their responsibility, members of the boards of directors should create and control the company’s development strategy. Participants must report in detail on the financial condition of the asset at the annual meeting of shareholders, as well as monitor the performance of all corporation structures. A virtual boardroom greatly simplifies this process even if the executives are in different countries at the time of the emergency meeting.

Sometimes members of the board of directors create separate committees to solve diverse problems. For example, it can be a committee for strategy and development, for reliability and safety, or a financial committee. Each of them has its chairman and three members to distribute responsibilities and resolve current issues. Virtual board software in this case is also used for online meetings both within the committee and global meetings of the boards of directors.

Main Responsibilities of the Board of Directors

Members of the board of directors are obliged to act in the interests of the corporation and make every effort for its development. The ultimate goal is to make a profit greater than or equal to the amount for the previous calendar period. Each of the board members is a trustee of the company and always puts business needs ahead of personal interests. There are many responsibilities for members of the board of directors, which can be divided into several categories.

Members of the board of directors are required to attend meetings, including using the capabilities of the online board meeting software. Within the framework of these meetings, reports provided by corporate officials are discussed, voting is held, and decisions important for the company are made. In case of refusal to perform duties or systematic failure to attend meetings of directors, a member of the board faces suspension or legal consequences.

How to Choose Board Members for Your Corporation

As mentioned earlier, the shareholders of the company are responsible for appointing the members of the boards of directors. However, the founders carry out the search, selection, and interviews with potential candidates. Thus, business owners can choose from the best employees who are best suited for this role. To select ideal candidates for the position of members of the board of directors, it is necessary to adhere to the following plan:

1. Draw up the main characteristics. A person who is a member of the board of directors must have certain skills and qualities. This is the ability to accept a paperless meeting solution, work as part of a team, be responsible, etc.
2. Choose in favor of people with experience as a CEO.
3. Select an applicant who has worked in your company’s industry.
4. The person must have specialized knowledge relevant to your product or service.

The exact number of board members will depend on the size of your company and the complexity of the internal structure. It is better to choose an odd number of participants to avoid an equal number of votes when voting. These people should also be able to use board management software to communicate during general meetings.

Launching an eCommerce store comes with numerous challenges. You need to use powerful marketing tactics to reach potential customers and earn their trust. Also, you have to constantly understand what they want, and keep up with their changing demands.

But the biggest challenge of running an online store is that the landscape is becoming fiercely competitive. Whether you’re selling automobile accessories or handmade jewelry, you’ll find a ton of other online retailers offering similar products.

Small businesses have a particularly difficult time trying to stay afloat amidst stiff competition from established eCommerce companies, such as Amazon.

It isn’t surprising considering that Amazon accounts for nearly 50% of the eCommerce retail market share in the US. The leading eCommerce marketplace has turned into the go-to online shopping destination for consumers across different demographics.

Is Amazon Worth Competing With?

Even if you’re a small business that focuses on a particular niche and caters to a narrow demographic, you’ll still have to compete with Amazon.

Amazon’s diverse assortment of products, seamless checkout, helpful customer support, and quick delivery timelines have contributed to its astonishing success. From home improvement and renovation to kitchen supplies and nutritional supplements, it’s possible to get just about anything delivered to your doorstep within a day.

But that doesn’t mean small business owners should abandon their hopes of making a mark with eCommerce. Starting an online store can be instrumental in helping you reach new customers and drive more sales. Also, it’ll help you attract customers from popular online channels, such as search engines and social media platforms.

If your brick-and-mortar store has been struggling with declining foot traffic and revenue, starting an eCommerce site is the logical next step. 

So, how do you grow your small business eCommerce store when Amazon has already grabbed their attention and trust? The key is to learn from the online retail giant’s growth from a simple bookstore.

In the following sections, we’ll discuss a few useful tips to help small business eCommerce stores survive in a market dominated by Amazon. Let’s get started.

Focus on User Experience (UX)

Amazon’s website and mobile app may not be the finest example of web design. But what works for the platform is that it delivers a frictionless purchase experience.

Consumers can easily browse through different categories to find the product they need. Or they can simply use the search bar. The product descriptions are fairly detailed, and the checkout process is a breeze.

If you’re building an eCommerce site for your small business, work on improving the user experience. Look beyond the visual elements of the website to evaluate its usability and accessibility. 

Pay attention to different aspects of UX, including site speed, security, and responsiveness. Enhance your website with advanced search functionalities powered by artificial intelligence (AI) algorithms. It’ll save your customers the hassle of scrolling through multiple category pages.

You can take things up a notch by using modern tech innovations, such as augmented reality (AR) and voice search. AR is already being used by major retailers, such as IKEA and Sephora, to help customers understand how well a product will fit their needs. Similarly, optimizing your website for voice search will make it compatible with smart speakers and virtual assistants.

Establish Industry Authority

Let’s face it – as a small business owner, you don’t have the kind of marketing budget and clout that Amazon does. It’ll take you years, if not decades, to turn into a giant online retail marketplace that could give Amazon a run for their money.

Instead, a smarter move would be to work on becoming a trusted authority figure in your industry.

Think about eCommerce stores, such as Glossier and Beardbrand. Even though there’s no dearth of skin-care products on Amazon, thousands still turn to Glossier when they need to buy a new serum or lotion.

It’s because the brand has carved a reputation for itself as a reliable destination for all things skincare. They’ve used content marketing and social media marketing to build a rapport with their audience and earn their trust.

If you’re launching your small business eCommerce store, outline a robust content strategy that addresses the pain points of your potential customers. 

Retain Your Customers

Customer retention is one of the most crucial aspects of growing an eCommerce site. While attracting new visitors will always be important, it’s your existing customers who help build your brand.

An easy way of retaining customers is to offer them discounts or free gifts on repeat purchases. Or you could start a rewards program to let customers accumulate redeemable points after every purchase.

Another clever tactic is to offer a subscription service for products that demand repeat purchases.

Closing Thoughts

The rise of Amazon isn’t a story of overnight success. It’s a lesson in understanding what your customers want and changing your offerings accordingly.

If you want your small business eCommerce store to succeed in today’s competitive landscape, work on creating a flawless user experience. Use suitable strategies to retain your customers and earn their loyalty.

Lastly, leverage content marketing to position your brand as an industry authority.

In 1996, the government introduced the Health Insurance Portability and Accountability Act (HIPAA) to protect sensitive patient information. HIPAA includes standards that prevent protected health information (PHI) from being disclosed without the patient’s consent. “Covered entities,” such as providers, health plans, and health clearinghouses, are required to adhere to strict privacy standards. 

However, HIPAA regulations also extend to vendors and partners who work with covered entities. Therefore, if your organization is a covered entity and you work with partners who have access to patients’ PHI, you need to implement Business Associate Agreements.

What is a Business Associate Agreement?

A Business Associate Agreement is a contract between a covered entity and its vendors that stipulates the types of patient data the vendor can receive and how they can use it. These agreements ensure that patient data stays private and protected. 

What does a Business Associate Agreement include?

Business Associate Agreements cover how partner organizations must treat PHI. An agreement establishes PHI’s permitted uses and disclosures, confirming that the vendor will not use or disclose the PHI other than those explicitly stated. 

A Business Associate Agreement also requires the vendor to implement appropriate safeguards to prevent unauthorized use or disclosure of private patient information. The agreement also requires the business associate to report any use of PHI not included in the contract, including data breaches. 

Business associates must also make internal practices, books, and records regarding the use and disclosure of PHI to HHS to ensure HIPAA compliance. Additionally, the agreement stipulates that all PHI information must be destroyed, if feasible, at the end of the contract. 

Business associates must also ensure that any subcontractors with access to PHI agree to the same regulations and restrictions regarding its use and disclosure. 

What qualifies as a business associate?

According to HHS, a business associate is any person or entity — outside of a member of the covered entity — who performs functions on behalf of a covered entity that involves access to PHI. Additionally, any subcontractor that creates, receives, maintains, or transmits PHI on behalf of another business associate must adhere to the same regulations outlined in a Business Associate Agreement.

What are some common Business Associate Agreement mistakes?

One of the most significant errors covered entities, and their business associates make is not having an agreement in place or having an incomplete agreement. Many covered entities don’t know which partners qualify as business associates. Additionally, a business associate’s status may change if the scope of the partnership changes over time.

Other common errors include:

Making all contractors sign a Business Associate Agreement

While it might feel safer to have all contractors sign Business Associate Agreements, an agreement isn’t necessary if a contractor or service provider doesn’t access, use, or disclose PHI. 

Assuming having an agreement in place means compliance

Additionally, a Business Associate Agreement doesn’t necessarily mean compliance. The agreement must be complete, and the associate must adhere to the regulations and restrictions in the agreement. For example, if a contractor or service provider doesn’t implement the appropriate safeguards, they’re non-compliant, and so are you. Similarly, if your business associate uses subcontractors but doesn’t make them follow the same security protocols, they’re non-compliant. 

Not having companies that touch PHI sign an agreement

With modern electronic communications and data transmission, PHI passes through more organizations than you might realize. Any software solution that handles PHI is a business associate and requires a Business Associate Agreement. 

Using an incomplete Business Associate Agreement template

While a template can help you cover all of the necessary aspects of a Business Associate Agreement, you should carefully review a template before using it. Templates should be relevant, and you should be able to personalize them to cover all requirements stimulated by a covered entity.

Why is HIPAA compliance important?

Noncompliance with HIPAA can result in hefty fines and a loss of patient trust. Your patients rely on you to protect their private information. When data breaches occur, your patients may question whether they can trust your organization. 

Additionally, the financial penalties for HIPAA violations can reach $1.5 million in a single year. There are four tiers of violations. Tier one includes accidental violation while exercising reasonable due diligence that the covered entity isn’t aware of. Tier two violations are also accidental, but the covered entitled either knew or should have known about the violation. Tier three violations include willful neglect that is corrected within 30 days of discovery. Finally, tier four includes violations caused by willful neglect that is not corrected within 30 days of discovery. 

Maintaining HIPAA compliance is critical to your organization’s success. Choose the right business partners who also take HIPAA and your patients’ privacy seriously. Curogram is a HIPAA compliant patient engagement platform featuring double encryption, ensuring that PHI is secure from appointment scheduling through telemedicine appointments. Contact Curogram to learn more.