Board members can become disengaged even despite their best intentions. This is often the result of poor group dynamics – rivalries and dominance by a handful of directors, and poor communication. These hinder the board from participating in the collective deliberation that’s vital to make a sound decision.

The board could also fail to create suitable internal structures to help carry its responsibilities for performance assessment. This typically means establishing committees or officer positions whose duties include gathering, analyzing and presenting evaluation results to the board for consideration. It is highly unlikely that the board will be able to effectively oversee these matters if left to the CEO and management team.

In addition, the board will likely misunderstand its overall performance if it doesn’t incorporate behavioral factors into its review of directors’ individual contributions and effectiveness. This leads to a sloppy process designed to satisfy listing requirements, or to show a lack of respect to good governance.

There are many ways that boards can improve their performance and meet their fiduciary obligations. The first step is to concentrate on the quality of the human interactions that occur in the boardroom. This can be accomplished by ensuring that the board is adaptable and resilient, as well as strategic in nature. It’s also important to offer the appropriate mix of skills and experiences as well as gender diversity. This allows the board to have a broad range of perspectives and allows them to more effectively tackle important issues. It also helps the board to create an environment that promotes open communication and a variety of perspectives.

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