Boards that want to improve performance will need a comprehensive approach. This includes ensuring that the board is equipped with the right mix of abilities as well as establishing a positive environment and streamlining processes. By addressing these areas, boards can promote best practices and speed up the decision-making process.
The chair of the board is a key factor in determining how the board will function. A chair who lacks leadership or coordination skills is not likely to be able to create an environment that allows directors to share their perspectives and engage in productive discussions. Similarly, a chair who is overly controlling and insecure may create an environment in which the board is not transparent and stifles discussion.
Dysfunction is one of the most common issues boards confront. While this issue can result from personal conflicts among board members, it can be caused by insufficient structures to help carry the board’s performance assessment obligations. The decision to leave these duties to the board as a whole, or delegating them to an executive committee can lead to inadequate oversight.
The ability of boards to access and analyze information is a crucial aspect. Having access to the right information can greatly improve board efficiency and allow boards to make better informed decisions. However, many boards have ineffective processes to share information and source. If this issue is not addressed the issue will make it difficult for the board to improve its performance.