Boards play a vital function to play in ensuring that their organizations flourish. They are charged with the legal responsibility to protect and improve their organizations (as as defined by those who give them the charter or tax exempt status). A board’s poor performance can affect the image of an organization and cost the company money. Often, this is the result of a lack of clarity around the roles and responsibilities of both the executive team and the board.
If there is uncertainty about the type and amount of assessments that boards should be conducting, it could hinder its effectiveness. This can be because the board doesn’t have internal structures that can gather and report information on performance or is not sure of what it is seeking in its assessments. It can also occur because the board does not understand the importance of including specific behavioural aspects when evaluating the performance of employees.
Some boards get too involved in the operational details and make decisions that should be taken by the management. This is the case when there is no open communication between the executive team and the board, or when philosophical differences about the role of the board are not addressed.
A board’s inability to meet its performance-based duties could indicate that it is disengaged from its role. There are many reasons behind this, such as dysfunctional group dynamics that hinder collective discussion, poor communication, and the absence of the strategic plan.
http://www.boardroompro.net/5-organizational-assessment-tools-for-nonprofits/