A high-performing, value-enhancing board requires addressing many issues. This involves having the appropriate board members and fostering a positive board culture, distributing information easily while streamlining processes and executing regular evaluations. This isn’t easy to achieve, and problems often arise. Some of these problems are simple you can find out more to resolve, whereas others are more difficult. The good news is that many of these problems can be resolved.
A frequent issue is when a board fails in its duty to evaluate its own performance by establishing internal structures and processes that it needs. This typically means establishing officers or committees that are responsible for gathering data, analyzing and presenting regularly information on performance to the board.
When this is not done, it can cause the board to fail to comprehend its strengths and weaknesses. This can also hinder the board taking appropriate action to address areas for improvement.
A board that doesn’t follow through with its agreed upon improvement plans can be a problem. This is often the case when a board is distracted by other issues and loses focus on what was previously identified in its previous assessment.
Boards should conduct a thorough self-evaluation at least once per year. BoardEffect incorporates a survey that ensures accuracy. It can also be used to create a full evaluation of the board should it be necessary. Through this process boards can ensure that they are constantly focussed on the most important issues and that their collective work is a key factor in the company’s success.