Board members can lose interest, regardless of their best intentions. This is usually the result of poor group dynamics–rivalries and dominance of a few directors, and bad communication–that prevent the board from engaging in the collective discussion essential for effective decision-making.
It could also be unsuccessful in establishing internal structures that contribute to the board’s assessment of performance responsibility. It is common to form committees http://boardroompro.net/managing-conflict-of-interest-at-board-level-4-things-to-know or officer roles which are charged with gathering and analyzing evaluation results before making them available to the board for consideration. It is important to note that entrusting these tasks to the entire board or even confining them to the CEO and management team is unlikely to provide effective supervision.
Additionally, the board is more likely to miss the overall performance of its board in the absence of the behavioural aspects when evaluating the individual directors’ contribution and effectiveness. This results in a routine process that is conducted in order to satisfy listing requirements or to make a statement to good governance.
There are a variety of ways boards can improve their performance and meet their fiduciary responsibilities. The starting point is to focus on the quality of the human interactions that occur in the boardroom. This can be accomplished by ensuring that the board is adaptable and resilient in its nature. It is also crucial to offer the right mix of abilities and experiences that include gender diversity. This allows the board to have a broad range of perspectives to be gained and allows them to better address crucial issues. It also helps the board to create an environment that encourages open communication and a variety of perspectives.