Boards have a crucial responsibility to ensure that their organizations are successful. They are legally bound to safeguard and promote the organization (as defined in their charter or tax-exempt status). If boards fail to perform, it can damage an organisation’s reputation and cost it money. This is usually the result of a lack in understanding the roles and responsibilities both of the executive team as well as the board.

If there is confusion over the nature and extent of assessment that a board must conduct, it can disrupt its effectiveness. This could be because the board doesn’t have internal structures to gather and report information on performance or isn’t certain of what it is seeking in its assessments. It can also occur because the board does not understand the importance of including specific behavioural factors in assessing performance.

Certain boards find themselves too involved in operational details and taking decisions that should to be made by the management. This happens when there isn’t any open communication between the executive team and the board or when philosophical differences regarding the role of the board are not addressed.

The failure of a board to carry out its duties in assessing performance is usually a sign of its overall detachment from its duties. There are many reasons for this, including dysfunctional group dynamics, which inhibit collective deliberation, poor communication, and the absence of a strategic plan.

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