How to Elevate Board Performance Problems

Despite their best intentions, board members can be disengaged from their crucial oversight responsibility. This is often the result of bad group dynamics, such as rivalries or dominance by a few directors, and a lack of communication. These prevent the board from engaging in the collective deliberation that’s crucial for effective decision-making.

The board might not be able to establish appropriate internal structures to help carry out its performance assessment responsibilities. It is common to form officer roles or committees which are charged with gathering and analyzing evaluation results before presenting them to the board for review. It is important to note that entrusting these tasks to the entire board, or even delegating them to the CEO and management team is unlikely to provide effective supervision.

The board will likely be unable to assess its overall performance in the event that it fails to consider the behavioural aspects when evaluating individual directors’ contributions and effectiveness. This is usually an exercise that is merely performed solely to satisfy the listing requirements or provide lip service to best-practice governance.

There are many ways that boards can enhance their performance and fulfill their fiduciary obligations. The starting point is to focus on the quality of interactions between people in the boardroom. This can be achieved when the board is flexible and resilient as well as strategic. It is also crucial to offer the appropriate mix of skills and experiences as well as gender diversity. This allows the board to get a wider range of perspectives and more effectively tackle the most pressing issues. It also helps the board to create an environment of collaboration that encourages open communication and a variety of perspectives.

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