Are boards set up to succeed in 2025? Board Intelligence's report takes a hard look at boardroom performance - and finds that while public and internal criticism of boards is growing, much of it may be justified.
Criticism of boards' performance is increasingly common, but is it fair? And if so, what's getting in their way?
Drawing on insights from over 1,000 boards, directors, and governance professionals, Board Intelligence's article explores what’s really holding boards back - and what can be done to turn things around.
With only 30% of executives rating their boards as 'good' or 'excellent', and nearly half wanting changes in board composition, this report identifies some of the key issues facing boards, including:
- Lack of Strategic Focus: Boards are too operational and not spending enough time on long-term plans. 80% of directors believe their boards are "stuck in the weeds", with 74% of directors saying boards should spend more time on big-picture goals.
- Poor-Quality Information: Board packs are overly long (averaging nearly 600 pages monthly for large companies), often delivered late, and difficult to digest. Only 1% of directors rate them as 'excellent', while 68% rated them as 'weak' or 'poor'. This overload hampers effective preparation and decision-making.
- Overloaded Agendas: Meetings are stretched thin, averaging 11 items in under 4 hours. Limited time for discussion means key issues get insufficient attention, with meetings often focused on backward-looking or procedural matters instead of strategic foresight.
- Underprepared Directors: Non-executive directors, often juggling multiple roles, struggle to keep up due to late or unclear materials and lack of technical expertise in areas like AI or IT systems. In fact, 83% of directors don't believe their board is set up to seize AI opportunities.
- Misalignment and Inefficiency: Boards often review items that don’t reflect business priorities. This wastes valuable time and reduces their ability to add strategic value or fulfil governance responsibilities.
With some of the key solutions explored including:
- Improvement of Board Packs: Delivering concise, relevant, and timely information to help directors prepare effectively and focus on critical issues.
- Restructuring of Agendas: Prioritising strategic, forward-looking discussions and eliminating unnecessary ritualistic agenda items.
- Adoption of a Scientific Mindset: Using data and AI tools to analyse and improve board operations, just as organisations do in other business areas.
- Measuring ROI: Boards should assess their return on investment, especially since large companies spend millions annually on board operation.
Boards are vital, and yet they may very well be set up to fail. By applying rigour, focusing on strategic value, and leveraging data-driven insights, this is a great insight on how boards can dramatically improve their performance and impact.
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Read the full article here.