A comprehensive approach is required for boards that want to improve their performance. This should include ensuring the board is equipped with the right combination of abilities, creating positive attitudes in the boardroom, streamlining processes, and conducting regular evaluations. By board performance problems addressing these issues, boards can drive the best practices and accelerate the decision-making process.
The chair of the board plays a vital role in determining how a board functions. A chair who isn’t able to lead or coordination skills will be unable to create an environment in which directors are able to share their views and participate in productive discussions. A chair who is unsure and overly swayed can create a situation where the board is not transparent and discussion is stifled.
One of the most common issues boards face is dysfunction. The problem could be triggered by personal conflicts between board members or can be the result of insufficient structures which facilitate the board’s responsibility for performance assessment. Leaving these responsibilities to the board in its entirety or delegating them to the executive committee will often lead to subpar oversight.
Another crucial aspect to take into consideration is how the board performs in terms of its ability to access and process information. Access to the correct data will improve board effectiveness, and allow boards to make better decisions. However there are many boards that have ineffective processes for sharing and sourcing information. It is difficult to improve a board’s performance unless this issue is addressed.
