How to Solve Board Performance Problems

Boards play an important role in ensuring the success of their organisations. They are legally required to safeguard and promote the organization (as as stated in their charter or tax-exempt status). If boards fail to function properly they can harm the reputation of a company and cost the company money. This is usually because of a lack of understanding of the roles and responsibilities both of the executive team and the board.

When there is confusion about the type and amount of assessments boards should conduct, it can disrupt its effectiveness. It can be that the board does not have internal structures to collect and report performance information or is unsure what it wants to see in its assessments. This can also happen because the board doesn’t understand the importance of incorporating specific behaviours in the evaluation of performance.

Certain boards are too involved in the operational details and take decisions that should be taken by management. This often occurs due to an absence of communication between the additional resources executive team and board members, or when the underlying philosophical issues about the role of a board aren’t addressed in a direct manner.

A board’s failure to fulfill its performance assessment responsibilities is often a sign of its overall disengagement from its role. There are many reasons for this, including dysfunctional group dynamics, which inhibit collective deliberation, poor communication, and the lack of a strategic plan.