Despite best intentions, board members may occasionally become disconnected from their oversight duties. This is usually the result of bad group dynamics, such as rivalries and dominance of a few directors, and bad communication–that prevent the board from engaging in the collective discussion vital for effective decision-making.
The board might also not have the proper internal structures that facilitate carrying its responsibilities for performance assessment. This usually means establishing committees or officer positions that are responsible for gathering, analysing and bringing evaluation results to the board for consideration. It is highly unlikely that the board will be able to effectively supervise these matters if they are given to the CEO and management team.
The board could miss the overall performance of its board if it doesn’t incorporate the behavioural aspects when evaluating the individual directors’ contribution and effectiveness. This can result in a superficial process that is carried out to satisfy listing requirements, or to show a lack of respect to good governance.
There are plenty of ways boards can boost their performance and ensure that they’re meeting their fiduciary responsibilities. Focusing on the quality human interactions in the boardroom is a good first step. This can be achieved by ensuring that the board is adaptable, resilient and strategic in its approach. It is also vital to provide the right mix of skills and experiences, including gender diversity. This helps the board have a wider array of perspectives and to more effectively tackle the most pressing issues. It also helps the board create an environment that promotes open communication and a diversity of viewpoints.