Recent studies of board performance cite a top issue – director behavior. Board member behaviors that creates frustration include:
- Not contributing meaningfully to discussions;
- Long tenure that leads to diminished performance;
- Not having the necessary expertise for the particular board role;
- Possessing an Interaction style that negatively impacts board dynamics, culture, and efficiency.
A PwC survey* of 638 directors in large companies (65% men and 32% women) noted that their boards have performance issues. 78% of them believe the assessment of their board’s performance is incomplete and insufficient. 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, or 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 members should work to cultivate a board culture that is clearly defined and includes (1) shared ownership and responsibility (2) key steps for improvement that can be taken by individual directors (3) key responsibilities for the board leaders. This board culture can be created by steps which include:
- Setting 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 Get to Know Each Board Member: Strengthen relationships within the board;
- Offer Insights: As a board member, you must be willing to offer your point of view to the board based on experience and expertise;
- Outline Specific Skills Needed by Board Members: Traditional skills remain important, (industry knowledge, financial acumen, and operational experience as examples) but emphasis also needs to be placed on the need for new skills like Artificial Intelligence (AI).
*https://www.pwc.com Governance Insights Center survey
Our governance team helps boards become high-performing with top- quality talent working well together. Reach out if you need advice or help at dhamlin@chros2go.com; 510-517-7791
For your Talent needs in direct hire, full-time or part-time contract staffing in Board Governance, contact Executive Recruiter, Leesa Meintzer at leesa@2gorecruiting.com.
Leesa Meintzer is an executive recruiter with more than 20 years of experience in talent acquisition. She excels in partnering across various business functions and brings a comprehensive perspective to talent acquisition. She works with Engineering, Healthcare, Product, Finance, Accounting, Business Operations, Sales, Manufacturing, Human Resources, Learning & Development, and Talent Acquisition for corporate and high-growth start-ups.
2GO Advisory Group™ is a San Francisco Bay Area pioneer in fractional C-suite services. For 35+ years, our CFOs2GO® lineage has grown to COOs2GO™, CHROs2GO™, CIOs2GO™, and Talent2GO™, pairing consulting partners with recruiting to deliver tailored executive solutions. We help organizations navigate change and execute strategy across industries in the U.S. and internationally, with local representation in most metros. Copyright.