To create a board that is high-performing and valuable it is important to address many issues. This includes having the right people on the board. It also requires creating a positive culture, providing information that is easily accessible, streamlining processes you can find out more and conducting regular reviews. It is not an easy task, and there are always issues. Some of these problems are simple to solve, whereas others are more difficult. The good news is, most of these issues can be solved.
A common issue is when a board does not perform in its responsibility to evaluate its own performance by establishing internal structures and processes it needs. This usually involves establishing officers and committees responsible to gather, analyze and regularly present performance data to the Board.
When this is not done, it can cause the board to fail to comprehend its strengths and weaknesses. This could prevent the board taking appropriate action to address areas of improvement.
A board that fails to follow through with its agreed-upon improvement plans is a further issue. This can happen when a board is distracted by other issues and loses focus on the issues discovered during its previous assessment.
Boards should conduct a thorough self-evaluation at least once per year. The built-in survey in BoardEffect helps ensure accuracy and can be used as a basis for a full evaluation of the board should it be required. By following this method boards can ensure that they are always focusing on the most important issues and that their actions contribute to the company’s success.