How to Elevate Board Performance Problems

Despite best intentions, board members can sometimes become disengaged from their vital oversight responsibilities. This is usually the result of bad group dynamics, such as rivalries and dominance by a handful of directors, and bad communication–that stop the board from participating in the collective decision-making process vital for effective decision-making.

It could also fail in creating internal structures that contribute to the board’s performance evaluation responsibilities. It is commonplace to establish officer roles or committees which are responsible for collecting and analyzing the results of evaluations, before giving them to the board for review. Leaving these matters to the entire board, or even confining them to the management team and CEO is likely to not result in effective supervision.

The board is likely to miss the overall performance of their company if it does not include behavioural factors in evaluating individual directors’ contributions. This can lead to an exercise that is merely designed to only satisfy listing requirements or pay lip service to best-practice governance.

There are a variety of ways boards can enhance their performance and ensure they’re fulfilling their fiduciary responsibilities. Focusing on the highest quality human interactions in the boardroom is a good first step. This can be achieved when the board is flexible and resilient, as well, and strategically. It is also crucial to offer the right mix of skills and experiences, including gender diversity. This allows the board to have a greater variety of perspectives and can more effectively address important issues. This allows the board to create a collaborative environment that encourages open communication and diverse perspectives.

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