Despite the best intentions, board members may sometimes become disengaged from their vital oversight duties. This is often due to dysfunctional group dynamics such as rivalries, dominance by a few directors, and poor communication which prevents the board from engaging the collective deliberation essential for effective decision-making.

The board could not be able to establish appropriate internal structures you can find out more that allow it to carry its duties of performance assessment. It is typical to establish officer roles or committees, that are responsible for gathering and analyzing evaluation results before presenting them to the board for review. Delegating these issues to the entire board or even confining them to the management team and CEO is likely to not result in effective oversight.

In addition, the board will likely misunderstand its overall performance in the event that it fails to consider behavior factors when evaluating the director's contributions and effectiveness. This typically results in an ineffective process used to meet the requirements for listing or provide lip service to best-practice governance.

There are plenty of ways boards can enhance their performance and ensure that they're meeting their fiduciary responsibilities. Concentrating on the high-quality human interactions in the boardroom is a good first step. This can be accomplished by making sure that the board is adaptable and resilient as well as strategic in nature. It is also important to have the appropriate mix of experience and skills, including gender diversity. This helps the board have a wider array of perspectives, and more effectively solve the pressing issues. It also helps the board to create an environment of collaboration that encourages open communication and a variety of perspectives.