A comprehensive approach is required for boards that want to improve their performance. This involves making sure that the board has the appropriate mix of expertise and experience, establishing a positive culture and streamlining processes. By addressing these key areas boards will be able to drive best practices and accelerate decision-making.
The chair of the board is a crucial element in determining the way a board will function. A chair with weak leadership or coordination skills is not likely to be able to create an environment that allows directors to contribute their unique perspectives, and participate in productive discussions. A chair who is insecure and overly controlled could create an environment in which the board is not transparent and discussions are restricted.
One of the most prevalent problems a board will face is dysfunction. This problem can be caused by personal disputes between board members, or it can be the result of insufficient structures that allow the board to fulfill its responsibility for performance assessment. Delegating these responsibilities to an executive committee or the board is often the cause of subpar supervision.
A board’s ability to access and analyze information is another crucial factor. Accessing the right information can greatly improve the effectiveness of boards and allow them to make better informed decisions. Many boards don’t have efficient processes for sourcing information and sharing it. If this is not addressed, it will be difficult for an organization to improve its performance.
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