In the realm of corporate governance, your board of directors serves as the guiding force, steering your cooperative towards success through strategic decision-making and oversight.
However, not all boards are created equal. A weak board of directors can be detrimental to a cooperative’s performance and long-term sustainability.
I recently attended a conference where a speaker from Peak Solutions shared these ‘tells’ of a weakened board. I found them to be pretty accurate in my experience. Read through the list – any of these items look familiar?
Your Board May Be Weak If…
- The monthly board agenda has zero to little time spent on strategic reflection.
- There is no point-person or committee charged specifically with completing a CEO Evaluation.
- Your CEO does not look forward to his/her evaluation.
- No robust process for recruiting and evaluating directors exists.
- Director expectations are without “teeth” and accountability.
- No commitment exists for ongoing director development or perspective-gaining.
- Your CEO calls an outside consulting firm to come do “board training” on the separation between Board and CEO responsibilities.
Recognizing the signs of a weak board of directors is crucial for safeguarding the interests of shareholders and sustaining corporate goals. But that’s only the first step. Once identified, addressing those issues will foster a culture of accountability, transparency, and strategic foresight, setting the stage to strengthen your governance framework and long-term success.