How to Elevate Board Performance Problems

Despite the best intentions, board members can be disengaged from their vital oversight duties. This is often due to poor group dynamics like rivalries, dominance by a handful of directors and bad communication, that prevents the board from engaging the collective deliberation that is essential to effective decision-making.

It may also fail in establishing internal structures that contribute to the board’s performance evaluation obligations. This usually means establishing officers or committees whose duties include gathering, analysing and presenting evaluation results to the board for consideration. It is unlikely that the board will be able to effectively supervise these matters if they are given to the CEO and management team.

Additionally, the board will likely not be aware of its overall performance in the absence of behavioural factors when reviewing directors’ individual contributions and effectiveness. This can Ideals data room lead to an exercise that is merely used to meet the requirements of listing or to provide lip service to best-practice governance.

There are many ways boards can improve their performance and meet their fiduciary responsibilities. Focusing on the quality of human interactions in the boardroom is the first step. This can be achieved by making sure that the board is flexible and resilient, as well as strategic in nature. It’s also important to offer the right mix of abilities and experiences that include gender diversity. This lets the board get a wider range of perspectives and to more effectively address critical issues. This helps the board create a more collaborative environment that encourages open dialogue and a variety of perspectives.