Making a high-performing and value-enhancing board requires addressing many issues. This includes having the correct members on the board. It also involves fostering an environment that is positive, offering information that is easily accessible, streamlining processes, and conducting regular reviews. This is not easy to accomplish, and issues frequently arise. Some of these issues are easy to resolve, whereas others are more challenging. The good news is that most of these issues are solvable.
A frequent issue is when a board does not perform in its duty to evaluate itself by creating the internal structures and processes that it requires. This usually involves establishing officers or committees that are accountable for collecting, analyzing and regularly presenting performance data to the board.
If this isn’t done, it may cause the board to fail to recognize its strengths as well as weaknesses. This can also hinder the board from taking the appropriate actions to improve its performance.
Another issue arises when a board fails adhere to its agreed-upon strategies for improvement. This could happen when the board is distracted by other issues and loses focus on the issues identified web during its previous assessment.
Boards should conduct a thorough self-evaluation at least once per year. The built-in survey in BoardEffect helps ensure fidelity and can be used as a basis for a full board evaluation in the event of need. This process allows boards to ensure that they focus on the most important issues, and that their collective efforts contribute to the overall success of the company.
