Despite best intentions, board members can sometimes become disengaged from their critical oversight duties. This is usually the result of poor group dynamics–rivalries, domination by a few directors, and poor communication that hinder the board from engaging in the collective debate essential for effective decision-making.
It could also fail in establishing internal structures that are conducive to the board’s performance evaluation duties. This typically means establishing officers or committees that are responsible for gathering, analysing and presenting evaluation results to the full board for discussion. Leaving these matters to the entire board, or even confining them to the CEO and management team is unlikely to produce effective oversight.
The board will likely miss the overall performance of their company if they don’t take into account behavioural factors when evaluating the individual director’s contributions. This can lead to the process being merely superficial and conducted only to satisfy the listing requirements or provide lip service to best-practice governance.
There are many ways boards can enhance their performance and ensure they’re meeting their fiduciary obligations. The first step is to concentrate on the level of human interaction in the boardroom. This can be accomplished by making sure that the board is flexible and resilient as well http://boardroompro.net/directors-desk-board-portal-tutorial as strategic in its approach. It is equally important to have the appropriate mix of experience and abilities, which includes gender diversity. This allows the board to get a wider range of perspectives, and more effectively tackle the most pressing issues. It can also help the board establish a collaborative culture that fosters open communication and a diversity of viewpoints.
