Despite their best intentions, board members can sometimes be disengaged from their vital oversight duties. This is often due to dysfunctional group dynamics, such as rivalries, dominance by a small number of directors, and poor communication which prevents the board from engaging in the collective debate required for effective decision making.
It could also fail in creating internal structures that are suitable to the board’s assessment of performance responsibility. It is common to form committees or officer roles which are responsible for collecting and analyzing results from evaluations before present them to the board for consideration. It is unlikely that the board will be able to effectively oversee these matters http://boardroompro.net/5-organizational-assessment-tools-for-nonprofits if given to the CEO and management team.
In addition, the board is likely to not be aware of its overall performance in the event that it fails to consider behavior factors when evaluating the director’s contributions and effectiveness. This usually results in the process being merely superficial and designed to only satisfy the requirements for listing or provide lip service to best-practice governance.
There are many ways boards can improve their performance and fulfill their fiduciary responsibilities. Concentrating on the high-quality human interactions in the boardroom is a good first step. This can be achieved by making sure that the board is flexible and resilient as well as strategic in its nature. It is also crucial to have the right mix of knowledge and skills, including gender diversity. This gives the board a more diverse set of perspectives and allows them to more effectively tackle crucial issues. This helps the board create an environment of collaboration that encourages open dialogue and diverse perspectives.