The best approach is to set clear expectations and proactively prevent poor behaviours from arising. Cultivating a constructive board culture, driven by a strong tone at the top and consistently reflected in behaviours, is crucial. Aligning these behaviours with the organisation’s values ensures that directors serve as role models for those values.
The next critical step is to address any poor behaviours promptly and effectively. If an issue is isolated, it can often be resolved through a private conversation between the Chair and the relevant director.
However, if preventive measures have not been implemented—which is unfortunately common—a more comprehensive intervention may be needed. Occasionally, a director may justify their poor behaviour under the guise of ensuring rigorous oversight of management. This can complicate matters and often requires a whole board discussion to set clear expectations for how directors should conduct themselves. Ideally, these expectations will align with the organisation’s values. In some cases, seeking external advice or assistance may also be beneficial.
Here is a detailed article for more information – 5 steps to get the most out of your company director effectiveness reviews.