How Satisfied Are You with Your Board’s Behavior?
Dr. Donna Hamlin, CEO
Recent studies of board performance cite a top issue in performance: director behavior. Issues of frustration in the way board members behave include:
- Not contributing meaningfully to discussions
- Long tenure leads to diminished performance
- Lacks the necessary expertise for the role
- Interaction style negatively impacts on board dynamics, culture and fit
A PwC survey* of 638 directors in large companies (65% men and 32% women) noted that although their boards have performance issues, 78% of them believe the assessment of their board’s performance is weak, incomplete and not sufficiently done, so useless. As a result, their boards are not taking action to replace under-performing members because they don’t want to upset personal relationships, make things awkward, mishandle departure of a director at a mandatory retirement age.
What it Takes to Improve Board Effectiveness
The key question to ask is:
Does your board have a culture of accountability and commitment to permanent learning?
Board should work to cultivate a board culture clearly defined by director- shared ownership and responsibility Key steps for improvement can be taken by individual directors, the board leaders, the whole board together and the executive team.
- Set a Permanent Learning Culture: Provide additional education or training on key topics for all directors
- Invite Diversity of Thought:
Encourage more diverse viewpoints or
innovation
- Provide Time to Know Each Other: Strengthen relationships with fellow board members
Be more willing to speak up during
discussions
- Set Specific Skills Needed:
Move from just the traditional skills/traits
boards seek, such as industry knowledge,
financial acumen, operational experience
to add new skills needed, such as AI for
oversight and creative problem-solving.
Our team helps boards to become high performing, with top- quality talent working well together. Reach out if you need advice or assistance.
*https://www.pwc.com Governance Insights Center survey
