Boards have a crucial role to play in ensuring that their organizations flourish. They are charged with the legal obligation to safeguard and improve their organizations (as defined by the people who give them a charter or tax exempt status). A board’s ineffective performance can harm an organisation’s image and cost the company money. This is often the result of a lack of clarity regarding the roles and responsibilities both of the executive team and the board.

Disruptions to the effectiveness of an organization usually arise when there is a lack of clarity on the amount and type of assessment that the board needs to perform. This could be because the board lacks internal structures to gather and report on performance data, or because it is not sure of what it is looking for in its assessments. It can also occur because the board isn’t aware of the importance of incorporating specific behavioural factors when evaluating performance.

Some boards get too involved in operational issues and making decisions that are supposed to be made by management. This often occurs when there is a lack of open communication between the executive team and board members, or if the philosophical issues that underlie the role of a committee are not addressed directly.

A board’s failure to meet its performance assessment responsibilities is often a sign of its overall disengagement from its job. There are many reasons for this, including dysfunctional group dynamics that inhibit collective deliberation, poor communication, and the lack of the strategic plan.

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