Annual board evaluations often focus on compliance rather than genuine effectiveness. A recent article emphasizes that in today's uncertain climate, effective boards must prioritize sharp judgment under pressure and function as cohesive, critical thinking units, rather than simply monitoring performance.

• Effective boards provide direction during uncertainty, confidence under external pressure, and restraint when short-term measures threaten long-term value.
• The value of a board is in its ability to combine diverse perspectives, evaluate assumptions, and make sound decisions as a unit, not just individual résumés.
• High-performing boards see strategy as a continuous discipline, insist on clarity regarding choices and risks, and are willing to change course quickly when assumptions no longer hold.
• Effective boards foster an atmosphere where management brings bad news early, challenges are welcomed, and underperformance is addressed without drama, leading to improved management thinking and leadership capacity.
• Governance is revealed through behavior; boards with foresight meet more frequently to discuss emerging risks and consider scenarios, shifting from fixed agendas and quarterly cycles.