How to Elevate Board Performance Problems
examples of organizational assessments
Board members may become disengaged, regardless of their best intentions. This is usually due to dysfunctional group dynamics such as rivalries, dominance of a few directors and bad communication, which prevents the board of directors from engaging in the collective discussion necessary for effective decision making.
The board might also fail to create suitable internal structures that will allow it to carry its responsibilities for performance assessment. It is common to create officer roles or committees whose duties include gathering and analyzing evaluation results before presenting them to the board for review. It is unlikely that the board will be able to effectively manage these matters if they are given to the CEO and management team.
The board may not be able to judge the overall performance of their company if it does not include behavioural considerations when evaluating the contributions of directors. This results in a perfunctory process designed to satisfy listing requirements or to provide lip service to good governance.
There are many ways for boards to elevate their performance and ensure they’re fulfilling their fiduciary duties. The starting point is to focus on the quality of the human interactions that occur in the boardroom. This can be accomplished by making sure that the board is flexible, resilient and strategic in its nature. It’s also important to offer the right mix of abilities and experiences as well as gender diversity. This allows the board to get a wider range of perspectives and better deal with the issues that are critical to them. It can also help the board establish an environment of collaboration that encourages open communication and diverse viewpoints.