How to Solve Board Performance Problems

Boards have a crucial function to play in ensuring that their organisations thrive. They are legally required to safeguard and enhance the organization (as stipulated in their charter or tax-exempt status). If boards fail to perform, it can damage the reputation of a company and cost the company money. This is usually the result of a lack of understanding the roles and responsibilities both of the executive team as well as the board.

If there is confusion over the nature and extent of assessments that boards should conduct, it could hinder its effectiveness. It could be that the board is not able to establish internal structures to collect and report performance information or is unsure what it wants to see in its evaluations. It could also be due to the fact that the board does not comprehend the importance of including specific behavioral factors when assessing performance.

Some boards get too involved in the operational details and take decisions that should be made by the management. This happens most often due to an absence of clear communication between the executive team and board members, or when the underlying philosophical issues about the role of a board are not addressed directly.

A board’s failure to fulfill its performance assessment responsibilities is often a sign of its general disengagement from http://boardroompro.net/5-organizational-assessment-tools-for-nonprofits its role. There are many reasons for this, including dysfunctional group dynamics, which hinder collective decision-making, poor communication, and the absence of an overall strategy.