- by Sophie Pinkoski

 A strong board can be an organization’s secret weapon. In addition to meeting its fiduciary duty, a strong board can provide guidance for informed decisions that align with the mission, strategize about future challenges and opportunities, and consider stakeholder perspectives. When each of those things are offered seamlessly, it secures longevity for your organization’s future. But when dysfunction creeps in, it can undermine everything the organization stands for and works so hard to achieve Confusion replaces clarity. Delays replace actionable decisions. And instead of helping the organization act with confidence, the board becomes a barrier to progress. These problems can often build up, undetected over time, but when smaller signs are left ignored and unaddressed, it can fester into a much larger issue that grinds any forward momentum to a halt. In other words, the board becomes the limiting factor to the organization's performance. This is why it is so important to know how to identify the early signs of board dysfunction before it can escalate into something bigger. As a board or committee chair, it’s up to you to notice any unproductive shifts that no longer serve the board’s good intentions and take action to implement lasting solutions.

Finding the source of even one problem can lead to a domino effect that resolves issues elsewhere within the board.

Because every organization is different, each board will have their own unique strengths and limitations as its circumstances change over time. What worked well before may not apply as dynamics and priorities shift. Adapting the board to reflect rapid industry change can mean playing catch up as gaps become more apparent in areas such as governance processes, culture, or diversity of thought. As such, the organization’s needs will shift over time too, necessitating a need for regular assessments of the board’s function. If you find your board can no longer provide accountability, support, or resources in a timely manner, it may be time to evaluate, at a root-cause level, what’s holding it back.

Here are some common red flags to consider when identifying signs of board dysfunction:

Toxic board culture –– Your board’s culture sets the tone for how its directors interact and make decisions together. It influences the way the board impacts its ecosystem, both internally and externally. As board or committee chair, it’s up to you to set expectations for how directors behave during meetings and with each other outside of meetings to maximize the board’s effectiveness. Clarify roles and responsibilities and regularly remind everyone of the organization's mission and purpose.

The board’s priorities should first and foremost align with your organization’s objectives.

This involves ensuring everyone’s voice is heard and valued during board discussions. A diversity of voices at the table offers a plethora of perspectives when considering options, which makes for better decision making overall. The decision-making process may break down when homogeny prevails on the board. If everyone comes to a swift agreement on decisions without thorough discussion of risks, opportunities, and alternative options, the board runs the risk of falling into group think, further exacerbating its unchallenged biases. A culture that encourages swift agreement or no discussin is often a symptom of dominant voices drowning out those who feel less comfortable sharing a different point of view.

Conflict aversion within the board can mean these voices go unheard to avoid judgement or rocking the boat.

This erodes trust and makes it difficult to have honest, productive discussions around the best option for the organization. Encourage everyone to take the time during meetings to share their perspective, ensuring they can do so uninterrupted and without judgement. Instilling a culture of openness and curiosity amongst your directors will keep the board from devolving into complacency or toxic, personal disagreements.

Lack of accountability –– Sometimes general behavioural issues within a board is less of a problem within the culture and more about the individuals themselves. Each director will have varying degrees of commitment to the board depending on the time and energy they are able to offer. As a result, not everyone will come to meetings appropriately prepared or able and willing to contribute to discussions. This can manifest into disengagement and apathy in certain directors. If there is no regular accountability kept during meetings, the board can’t function to its fullest potential, leading to issues like stalled decision making or lack of clear action items. An inability to reach a consensus can mean important decisions are continually pushed to a later meeting. This can be especially frustrating for board members if individuals attempt to push their own agendas, thus pushing other established priorities further down the board’s agenda. Appeasing these voices can be a waste of time and resources. It’s important as the chair that you take the time to deliberately curtail unwanted behaviours such as these. Keep discussions on topic and give the floor to everyone as evenly as possible to keep the meeting from derailing from its set agenda. Individual one-on-one sessions will also give board members areas to improve and update their behaviour during meetings.

Outdated processes –– When it comes to board processes, governance is king. But there comes a point where overreliance on proper documentation and the bureaucracy of it all can grind momentum to a halt. If every decision has to go through overbuilt policies and procedures, a decision may never be reached. It may seem easier to avoid or defer certain discussions rather than make a formal decision.

Continually talking around decisions and putting off conclusions puts actual actions into limbo and stalls the organization’s ability to reach its biggest goals.

Many fantastic opportunities can be lost in the meantime when time and energy is wasted on a single decision that could have been made much quicker with a more streamlined approach. This is where reminding the board of its purpose can be critical. It can be necessary to raise awareness toward how the board’s decisions impact both the organization and the community it serves. When your directors can see the good that comes out of their work (or the harm or not taking action), they can better understand the importance of efficient decision making.

If your board does find itself getting stuck in the weeds, it may be worth assessing the effectiveness of its processes.

What was effective before may no longer be relevant now, especially with changes in the market and a regular rotation of board members, bringing in fresh new knowledge and expertise. You may have skill gaps on your board, which may require you to take stock and seek out individuals to further expand your board’s perspective. Another aspect that may be preventing effective decision making could be a lack of understanding of who has decision making authority. Clarity on who can confirm decisions and when could help streamline that process instead of getting caught in a loop of talking around the topic.

No board is without its own unique dysfunctions. Interpersonal tensions and out of date processes can hinder your board from assisting the organization to the best of its abilities. No matter what issues come to the surface for your board, it’s essential to catch and address them early to prevent them causing larger problems to spill over into your organization at large. As board chair, you can set the example for your directors and keep everyone aligned on what the organization needs for its continued success well into the future.

Further Reading:

Six Boardroom Dysfunctions Every Board Should Guard Against, KPMG

Five Signs of a Dysfunctional Board, Corporate Governance Institute

Dysfunctional Nonprofit Boards: Key Warning Signs, For Purpose Law Group

Recognising The Warning Signs of Board Dysfunction, AICD

The People Side of Board Dysfunction, Savvy Director

Fixing a Dysfunctional Board, Savvy Director