A high-performing, value-enhancing board requires addressing many issues. This includes having the right members on the board. It also involves fostering a positive culture, providing information that is easily accessible, streamlining processes, and conducting regular evaluations. This is not easy to achieve, and problems frequently occur. Certain of these issues can be easily addressed and others are more difficult. The good news is, the majority of these issues are solvable.
A common issue occurs when boards fail to create the internal structures and procedures it needs for carrying out its assessment responsibilities. This typically means establishing officers or committees that are accountable for collecting information, analyzing and regularly reporting performance data to the board.
If this isn’t done, the board may not be able recognize its strengths and weaknesses. It can also prevent the board from taking the appropriate actions to address areas in need of improvement.
A board that does not adhere to its agreed-upon improvement plans is a further issue. This could happen when the board is distracted by other issues and loses focus on what was determined during its previous review.
One of the most effective solutions to this issue is for boards to conduct a thorough self-evaluation at least every year. BoardEffect comes with a built-in survey which helps ensure that the board is in good shape. It can also be used to develop an entire assessment of the board should it be necessary. This method allows boards to ensure that they focus on the most additional resources important issues and that their collective efforts are a key factor in the success of the company.