Despite best intentions, board members may occasionally become disengaged from their vital oversight responsibility. This is often a result of bad group dynamics, such as rivalries and dominance by a handful of directors, and poor communication. These hinder the board from participating in the collective discussion necessary for effective decision-making.

It might also fail in creating internal structures that are suitable to the board’s performance evaluation responsibilities. This typically involves the establishment of officers or committees which are responsible for gathering, analysing and bringing results of assessments to the whole board for discussion. It is unlikely that the board will be able to effectively supervise these matters if left to the CEO and management team.

The board is likely to not be able to judge the overall performance of their company if it doesn’t include behavioural factors in evaluating individual directors’ contributions. This can lead to an exercise that is merely conducted only to satisfy listing requirements or pay lip service to best-practice governance.

Fortunately, there are many ways boards can improve their performance and ensure they’re fulfilling their fiduciary responsibilities. The first step is to concentrate on the level of human interaction in the boardroom. This can be accomplished by ensuring that the board is adaptable and resilient in nature. It is equally important to have http://boardroompro.net/directors-desk-board-portal-tutorial the appropriate mix of experience and skills, including gender diversity. This allows the board to have a greater variety of perspectives to be gained and enables them to more effectively address important issues. This helps the board create an environment of collaboration that encourages open communication and diverse perspectives.