To create a highly-performing, value-enhancing board requires the resolution of many issues. This involves having the right people on the board and encouraging a positive board culture, providing accessible information, streamlining processes, and conducting regular evaluations. It is not an easy task and there are a lot of issues. Some of these problems are simple to solve, whereas others can be more difficult. The good news is, the majority of these problems can be solved.
A common problem occurs when boards fail to establish the internal structures and procedures they require to fulfill its duties of assessing. This usually involves establishing officers or committees who are responsible for gathering information, analyzing and regularly reporting data on performance to the board.
If this isn’t completed, it can cause the board to fail to recognize its strengths as well as weaknesses. It could also hinder the board from taking the necessary actions to address areas that require improvement.
Another issue arises when a board fails to implement its agreed-upon strategies for improvement. This can happen if a board is distracted by other issues and loses focus on the issues http://www.boardroompro.net/managing-conflict-of-interest-at-board-level-4-things-to-know/ discovered during its previous assessment.
One of the best solutions to this problem is for boards to conduct an extensive self-evaluation at minimum every year. BoardEffect’s built-in surveys help ensure fidelity and can be used as the basis for a full evaluation of the board should it be required. By following this procedure boards can ensure that they are continually focussed on the most important issues and that their collective work is a key factor in the company’s success.
