Solving Board Performance Problems
Creating a high-performing, value-enhancing board requires addressing many issues. This includes having the correct people on the board. It is also about fostering an environment of positivity, providing information that is easily accessible, streamlining processes, and conducting regular reviews. This is not easy to do, and problems frequently arise. Some of these issues are easy to solve, whereas others can be more difficult. The good news is, most of these issues are solvable.
A common issue is when a board fails to establish the internal structures and processes board of directors conflict of interest it requires for executing its assessment responsibilities. This typically means establishing officers or committees who are responsible for gathering data, analyzing and presenting regularly performance data to the board.
When this is not done, it can cause the board to fail to recognize its strengths as well as weaknesses. This could prevent the board taking appropriate action to address areas that need improvement.
Another issue arises when a board fails implement its agreed-upon plans to improve. This can happen when a board is distracted by other issues and loses focus on the issues that were identified during the last review.
Boards should conduct an in-depth evaluation of themselves at least once per year. BoardEffect incorporates a survey that ensures that the board is in good shape. It can also be used to develop an exhaustive evaluation of the board in the event that it is required. By following this procedure boards can ensure that they are continually focussed on the most important issues and that their actions contribute to the company’s success.