Boards play an essential role in making sure that their organizations. They have the legal obligation to safeguard and grow their businesses (as established by those who give them a charter or tax exempt status). If boards aren’t performing well they can harm an organisation’s reputation and cost it money. This is often the result of a lack in understanding the roles and responsibilities both of the executive team as well as the board.
The effectiveness of an organization usually arise due to a lack of clarity on the type and amount of assessment the board should perform. This could be due to the fact that the board is not equipped with internal structures that can gather and report on performance information or is unsure of what it is looking for in its assessments. This could also be due to the fact that the board isn’t aware of the importance of incorporating specific behaviours into the assessment of performance.
Some boards find themselves getting too involved in operational details and taking decisions that should to be made by management. This is because there isn’t any open communication between the board and the executive team additional resources or when philosophical differences concerning the role of the board are not addressed.
A board’s inability to meet its performance-based duties could indicate that it has lost focus on its mission. Many reasons exist, such as dysfunctional group dynamics that inhibit collective deliberation and decision making poor communication, and the absence of a strategy.
