Boards who want to improve their performance require a comprehensive approach. This includes ensuring that the board has the correct mix of skills as well as establishing a positive environment and streamlining processes. By addressing these issues, boards can drive best practices and accelerate decisions.
The Chair of the board plays a vital role in determining how a board works. A chair who lacks leadership or coordination skills is unlikely to be in a position to create an environment that allows directors to offer their own perspectives and participate in productive discussions. In the same way, a chair who is too strict and insecure can create a climate in which the board is less than transparent and hinders discussion.
One of the most prevalent problems boards will encounter is dysfunction. This issue can be the result of personal conflicts among board members or it can be due to insufficient structures that help the board fulfill its obligation to evaluate performance. Delegating these responsibilities to an executive committee or the board can result in inadequate supervision.
Another crucial aspect to take into consideration is the performance of the board in terms of its ability to access and process information. Being able to access the correct information can greatly enhance the effectiveness of boards and allow them to make more informed decisions. A lot of boards do not have efficient processes for sourcing information and sharing it. Unless this is addressed it will be a challenge for the board to improve its performance.
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