Despite their best intentions, board members may sometimes become disconnected from their oversight obligations. This is usually the result of poor group dynamics–rivalries, domination by a few directors, and poor communication. These prevent the board from engaging in the collective discussion vital to make a sound decision.
It could also fail in creating internal structures that are conducive to the board’s performance assessment responsibility. It is commonplace to establish committees or officer roles whose duties include gathering and http://www.boardroompro.net/directors-desk-board-portal-tutorial/ analyzing the results of evaluations, before presenting them to the board for consideration. It is unlikely that the board will be able to effectively manage these matters if they are given to the CEO and management team.
The board is likely to be unable to assess the overall performance of their company if they don’t include behavioural factors in evaluating the contributions of directors. This results in a routine procedure that is used to satisfy listing requirements or to make a statement to good governance.
There are many ways boards can improve their performance and fulfill their fiduciary responsibilities. The first step is to concentrate on the quality of interactions between people in the boardroom. This can be accomplished by making sure that the board is adaptable and resilient, as well as strategic in its nature. It is equally important to have the right mix of knowledge and skills, including gender diversity. This allows the board a wider range of perspectives and can more effectively address important issues. It will also help the board develop an environment of collaboration that encourages open communication and a variety of perspectives.