To create a highly-performing, value-enhancing board is a matter of addressing numerous issues. This includes having the correct members on the board. It also requires fostering an environment of positivity, providing information that is easily accessible, streamlining processes and conducting regular evaluations. It isn’t an easy task to accomplish, and issues often occur. Some of these issues are easy to resolve, while others can be more difficult. The good news is that the majority of these issues are easily solved.
A common problem occurs when boards fail to create the internal structures and procedures it requires to carry out its assessment responsibilities. This typically means establishing officers or committees that are accountable for collecting information, analyzing and regularly reporting data on performance to the board.
When this is not completed, it can cause the board to fail to recognize its strengths as well as weaknesses. This can also prevent the board taking appropriate action to address areas that need improvement.
A board that fails to follow through with its agreed-upon improvement plans is a different issue. This happens when a board gets distracted by other things and loses focus on issues that were identified during the last review.
One of the most effective solutions to this issue is for boards to conduct an in-depth self-evaluation every year. The built-in survey in BoardEffect helps ensure accuracy and can serve as a basis for a full board assessment when needed. This allows boards to ensure that they focus on the most important issues and that their efforts contribute to the overall success of the company.
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