Board members can lose interest regardless of their best intentions. This is often due to poor group dynamics, like rivalries, dominance of a few directors, and poor communication which hinders the board from engaging the collective deliberation essential for effective decision-making.
The board may also fail to create suitable internal structures that allow it to carry the responsibilities of assessing performance. It is common to form officer roles or committees, which are responsible for collecting and analyzing the results of evaluations, before making them available to the board for consideration. It is highly unlikely that the board will be able to effectively supervise these matters if they are left to the CEO and the management team.
The board will likely misunderstand the overall performance of their company if it does not include behavioural considerations when the evaluation of individual directors’ contributions. This can lead to an ineffective process designed to only satisfy listing requirements or pay lip service to best-practice governance.
There are many ways boards can enhance their performance and fulfill their fiduciary obligations. The first step is to focus on the quality of human interactions in the boardroom. This can be achieved by ensuring that the board is adaptable and resilient as well as strategic in its nature. It’s also important to offer the right mix of expertise and experiences as well as gender diversity. This allows the board to have a broad range of perspectives to be gained and can more effectively address crucial issues. It also helps the board to create an environment that promotes open communication and diversity of views.
http://boardroompro.net/5-organizational-assessment-tools-for-nonprofits
