Boards play an essential role in making sure that their organisations. They are legally required to safeguard and enhance the company (as stipulated in their charter or tax-exempt status). A board’s poor performance can hurt the image of a company and cost them money. This is usually because of a lack in understanding of the roles and responsibilities of the executive team and the board.

When there is confusion about the type and amount of assessment that the board should conduct, it could affect its effectiveness. It could be because the board does not have internal structures to collect and report performance information or is unsure what it is looking for in its assessments. This can also happen because the board isn’t aware of the importance of incorporating specific behavioural aspects into the assessment of performance.

Some boards are too involved in the operational details and take decisions that should be made by the management. This usually happens due to a lack of transparency between the executive team and board members, or when the philosophical issues that underlie the role of a board aren’t addressed directly.

A board’s failure to carry out its duties in assessing performance is often a symptom of its overall disengagement from its job. There are many reasons for this, including dysfunctional group dynamics, which hinder collective discussion, poor communication, and the absence of an effective strategy.