To create a highly-performing, value-enhancing board requires addressing many issues. This includes having the correct people on the board. It is also about fostering a positive culture, providing information that is easily accessible, streamlining processes, and conducting regular reviews. This is not easy to achieve, and problems often occur. Some of these issues are easily addressed but others are more difficult. The good news is that many of these issues can be solved.
A common issue is when a board fails to create the internal structures and processes it needs for carrying out its duties of assessing. This usually means setting up officers or committees responsible for gathering, analyzing and regularly presenting performance data to the board.
If this is not done, the board might not be able identify its strengths and weaknesses. This can also prevent the board taking appropriate action to address areas for improvement.
A board that fails to follow through with its agreed-upon improvement plans is a different issue. This is often the case when a board becomes distracted by other issues and loses focus on the desk board issues that were identified in the last review.
Boards should conduct a thorough assessment of themselves at least once per year. BoardEffect’s built-in surveys help ensure fidelity and can serve as a basis for a full board evaluation should it be required. By following this method boards can ensure that they are constantly focused on the most pressing issues and that their collective work is a key factor in the company’s success.