It is crucial to obtain board support if you have a dysfunctional board that is underperforming. Board support allows issues to be addressed promptly and restores efficiency and trust. The benefits of board advisory for business growth include offering differing perspectives and ideas to assist with progression and strategy. However, if the board is not operating successfully, then this is a wasted endeavour.
Jo Haigh, Founder and Chairman of fds, gives an overview of what you should do if your board’s performance is lacking.
Identifying Issues with the Board
If your board isn’t performing well, the first thing to remember is that a board isn’t a team. A management group is a team, but a board, by law, is a group of independent people. Therefore, each director has to act independently to offer their expertise to contribute towards the board’s support. When the board leaves the room with a joint decision, this is where they become a united front. However, plenty of questions might arise if the board leaves the room and is completely dysfunctional. Is it personal? Is it business? Are board members enthusiastic? Do they care? Whatever the issue, action must be taken towards setting the board back on the right path.
Reviewing Board Performance
Under the UK Corporate Governance code, public companies must evaluate their board every year. Every three years, they must bring in a third party to carry out this evaluation. This can be done by simply using a questionnaire or by third-party board reviews. A third party will have one-to-one meetings with all of the directors and an individual debrief with the chair of the board. Ultimately, this will culminate in a discussion of how to get the board back to where it needs to be. The result of an evaluation should be an action plan to implement, and a sponsor enlisted to ensure that the actions are carried out.
Getting The Board Back on Track With Board Support
Once issues have been identified and performance reviewed, the focus must shift to action. Remotivating and inspiring an underperforming board starts with distinguishing clear goals and redefining the board’s purpose to align with the organisation’s strategic direction.
It would be helpful to implement an improvement plan that recognises the need for every board member to effectively fulfil their responsibilities. The introduction of performance reviews on an individual basis, which acknowledge any improvement made as well as necessary areas of enhancement, is a key motivational tool to reinforce a sense of consideration for board members.
Investing in Board Development and Training
Director-level training courses can inspire a necessary change in underperforming board members. While board members should already operate at a certain level of adequacy within their role, ongoing development is essential for keeping individuals informed, engaged and making a difference to the company of which they are a board member.
A commitment to ongoing development is a strong indicator that the board takes its responsibilities seriously and is prepared to lead with confidence and competence.
How fds can Help
Want further information on the board support services fds can offer you? Please contact us for an open, no-obligation discussion. We also provide director-level training courses that can assist your board in maximising their potential as valuable board members.