Board members can become disengaged, regardless of their best intentions. This is usually due to dysfunctional group dynamics, including rivalries, dominance by a small number of directors, and poor communication which prevents the board of directors from engaging in the collective debate required for effective decision making.

It may also fail in establishing internal structures that are suited to the board’s performance evaluation duties. This typically involves establishing officers or committees with the responsibility of gathering, analyzing and presenting evaluation results to the board for discussion. Leaving these matters to the entire board or even confining them to the management team and CEO is likely to not result in effective oversight.

The board may be unable to assess the overall performance of its company if they don’t include behavioural considerations when evaluating the individual director’s contributions. This results in a perfunctory procedure that is used in order to satisfy listing requirements or to show a lack of respect to good governance.

There are many ways boards can improve their performance and meet their fiduciary obligations. Concentrating on the high-quality human interactions in the boardroom is the initial step. This can be accomplished by ensuring that the board is flexible and resilient, as well as strategic in its approach. It is also crucial to offer the appropriate mix of skills and experiences and gender diversity. This allows the board to have a greater variety of perspectives to be gained and can more effectively address important issues. It also helps the board create an environment of collaboration that encourages open communication and a diversity of viewpoints.

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Anderson Anselmo