A comprehensive strategy is required by boards who wish to improve their performance. This involves ensuring that the board is equipped with the appropriate mix of expertise as well as establishing a positive environment and streamlining processes. By addressing these key areas, boards will be able to improve their practices and speed up decision-making.
The chair of the board is an essential aspect in determining how the board will operate. A chair who lacks leadership or coordination skills will not be able to create a setting which directors can share their perspectives and engage in productive conversations. In the same way, a chair who is overly controlling and insecure may create an environment in which the board is less than transparent and hinders discussion.
One of the biggest problems boards will encounter is dysfunction. This can be caused by personal disputes between board members or it can be the result of insufficient structures that facilitate the board’s accountability for performance evaluation. The transfer of these duties to an executive committee or board can result in subpar oversight.
A board’s ability to access and analyze information is a crucial aspect. Being able to access relevant information can greatly enhance board effectiveness and enable boards to make more informed decisions. However many boards have inadequate processes to share information and source. It will be difficult to improve a board’s performance unless this issue is addressed.