Boards that wish to improve performance require a comprehensive strategy. This should include ensuring the board has the right mix of expertise, encouraging an environment that is positive in the boardroom, streamlining processes, and conducting regular evaluations. By addressing these areas, boards will be able to implement best practices and speed decision making.
The chair of the board is an important factor in determining how a board functions. A chair who is not able to lead or coordination skills will not be able to create a setting which directors are able to provide their unique views and participate in productive conversations. A chair who is too strict and unsecure can create an environment in which the board is not transparent and restricts discussion.
Dysfunction is one of the most common issues boards face. Although this issue can arise from personal conflicts among board members, it could also be a result of inadequate structures to carry the board’s performance assessment obligations. By delegating these responsibilities to board as a whole or assigning them to the executive committee is often a route to poor oversight.
The ability of boards to access and analyze data is a crucial aspect. Access to the right data will improve board effectiveness, and help boards make better decisions. A lot of boards do not have effective processes for sourcing information and sharing it. It will be difficult to improve a board’s performance unless this issue is addressed.
