7 Signs of a Weak Board

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…

1. The monthly board agenda has zero to little time spent on strategic reflection.
   
   
2. There is no point-person or committee charged specifically with completing a CEO Evaluation.
   
   
3. Your CEO does not look forward to his/her evaluation.
   
   
4. No robust process for recruiting and evaluating directors exists.
   
   
5. Director expectations are without “teeth” and accountability.
   
   
6. No commitment exists for ongoing director development or perspective-gaining.
   
   
7. 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.