Board members may become disengaged, regardless of their best intentions. This is often a result of bad group dynamics, such as rivalries and dominance of a few directors, and poor communication. These prevent the board from engaging in the collective decision-making process necessary to make a sound decision.

The board might also not have the proper internal structures that will allow it to carry out its performance assessment responsibilities. It is commonplace to establish officers or committees whose duties include gathering and analyzing evaluation results before present them to the board for consideration. Delegating these issues to the board’s entire attention or even delegating them to the CEO and management team is unlikely to produce effective oversight.

The board will likely miss the overall performance of its business if it fails to take into account behavioural factors when evaluating individual directors’ contributions. This results in a perfunctory procedure that is used to meet listing requirements or to provide lip service you can find out more to good governance.

There are many ways boards can enhance their performance and fulfill their fiduciary responsibilities. Concentrating on the high-quality human interactions in the boardroom is a good first step. This can be achieved by ensuring that the board is adaptable and resilient, as well as strategic in its approach. It is also crucial to have the appropriate mix of experience and abilities, which includes gender diversity. This gives the board a broad range of perspectives and enables them to more effectively address crucial issues. This helps the board to create a more collaborative environment that encourages open dialogue and a variety of perspectives.