Board members can lose interest, regardless of their best intentions. This is often the result of poor group dynamics — rivalries and dominance of a few directors, and poor communication that stop the board from participating in the collective decision-making process crucial to make a sound decision.
It may also fail in establishing internal structures that are suitable to the board’s performance assessment obligations. This typically involves establishing committees or officer positions with the responsibility of gathering, analysing and presenting results of evaluations to the entire board for consideration. It is highly unlikely that the board will be able to effectively supervise these aspects if they’re left to the CEO and management team.
Finally, the board is more likely to be unable to assess its overall performance when it doesn’t consider the behavioural aspects when evaluating directors’ individual contributions and effectiveness. This can lead to a process that’s perfunctory and used to www.boardroompro.net meet listing requirements or pay lip service to best-practice governance.
There are many ways boards can improve their performance and fulfill their fiduciary obligations. The starting point is to focus on the quality of human interactions in the boardroom. This can be achieved if the board is flexible, resilient, and strategic. It is also vital to provide the right mix of expertise and experiences that include gender diversity. This allows the board a more diverse set of perspectives to be gained and enables them to more effectively address crucial issues. It also helps the board to create a collaborative culture that fosters open communication and a diversity of viewpoints.