How to Solve Common Board Performance Problems

Performance issues on boards are not uncommon and are often attributed to a variety. This includes having the most qualified people on the board creating a healthy and positive culture, ensuring access to information and conducting regular evaluations. The right approach to these areas is crucial to elevating the board and the business.

Board members are educated on various topics, but if certain directors have more knowledge than others, this could limit the discussion at meetings. Boards can deal with this by having mandatory training sessions available to all directors on topics of interest including M&A, new geography or updates to regulatory requirements. This helps to increase knowledge levels and ensures that all directors are well prepared for board meeting.

The board hasn’t put in place the proper structures and procedures to carry out its evaluation responsibilities including establishing an internal committee to gather and analyze performance data, or regularly reporting assessment results to the full board for discussion.

Boards should consider investing in third-party assessments that are performed by a third party. These evaluations add an additional layer of experience and impartiality that may be absent from an internal review. Professional evaluations can help stay clear of the possibility of political gamesmanship by staying clear of accusations and looking for a common path forward for improvement. They can also serve as neutral mediators to deal with sensitive problems involving group dynamics or individual egos. They can also provide a plan for continuous improvement, including measurable plans and time-bound goals. They can also provide guidance that is based on best practices and industry trends, helping the board to reduce its workload and increase the effectiveness of the board.