https://boardroompro.net/a-modern-environment-with-ideals-data-room/

Few governance issues are as challenging as assessing board performance. The interplay between firm management, the board’s performance and its results determines whether a board’s performance is more art than scienceand often not clear. A board could be doing a great job of overseeing a company however, shareholders are upset about the poor return on their investment. The board may have been inherited by the company’s management, governance and firm issues and are working to make things better. It may have also invested in new strategic initiatives and shaped the turnaround plan.

In other situations the board may be getting too involved in operations and making decisions that should be left to the management team. These situations are made even more challenging by the fact that the board does not utilize a proper method of reviewing its members. Without a formalized evaluation system in place, it is easy for minor issues to become serious problems that compromise the effectiveness of the board.

The board might have created an informal culture that doesn’t take its performance assessment obligations seriously. This could be because it doesn’t have the systems in place to collect information on performance, or it’s not able to acquire the necessary boardroom expertise to effectively carry out its duties of evaluation.

In addition to having good boardroom skills in place Boards must be open and willing to accept the results of the examination. The board should prioritise areas that need improvement, and work with the management team in developing an action plan. This could include arranging regular board training sessions on relevant subjects to increase knowledge levels across the board and to address information inconsistencies.