The Five Two Most Common Mistakes Boards Make (and How to Avoid Them) 

I create content so I make generous use of AI. I try not to copy and paste, instead giving similar prompts to three or four different models and incorporating the best of each into something that, hopefully, is useful and has the human touch. 

I requested the evergreen article “The Five Most Common Mistakes Boards Make(and How to Avoid Them)" from 4 LLMs and here are the results they generated:

Claude

  • Operating Without Clear Role Boundaries
  • Neglecting Board Development and Refreshment
  • Failing to Prioritize Strategic Oversight
  • Inadequate Risk Oversight
  • Poor Board Culture and Dynamics

ChatGPT

  • Failing to Focus on Strategy
  • Poor Board Communication
  • Neglecting Board Composition and Succession
  • Inadequate Risk Oversight
  • Failing to Evaluate and Improve Board Performance

Gemini 

  • Failing to Understand Their Role and Responsibilities
  • Lack of Diversity in Thought and Experience
  • Ineffective Board Meetings
  • Insufficient Engagement with Management
  • Neglecting Risk Management and Succession Planning

DeepSeek

  • Focusing on the Rearview Mirror: The Operational Trap
  • Falling Prey to Groupthink
  • Inadequate CEO Evaluation and Succession Planning
  • A Check-the-Box Approach to Risk Management
  • Underestimating the "S" in ESG

It quickly became clear to me that there are far more than five  mistakes that boards fall prey to and that the most common are not agreed upon. So I’ve limited myself to the two clear themes that emerged again and again across a number of searches. It doesn’t make a great listicle but it does get to the point. 

Mistake #1: Neglecting Board Composition and Succession

It starts with people. One of the board’s most important functions is to nominate other directors.  Almost every AI model mentioned this, but they often framed it as 'Lack of Diversity' or 'Neglecting Succession.' The real issue is that boards fail to treat composition as a continuous strategic priority.

The Consequences:

  • Skill Gaps: Without a strategic view of future challenges, the board lacks the expertise to guide management on areas like cybersecurity, ESG, or digital transformation.
  • Weak Succession: A lack of a pipeline leads to rushed, often poor, appointments for both the board itself and the CEO role.
  • Groupthink: A board with similar backgrounds and experiences will miss blind spots and innovate slowly.

How to Avoid It:

  • Identify the gaps: Map the skills, experience, and demographics of your current board against the strategic needs of the next 3-5 years.
  • Empower the Nominating Committee: Its primary job is to actively hunt for and cultivate a diverse pipeline of talent, long before a vacancy arises. This committee shouldn’t be merely a rubber stamp. 
  • Plan for Renewal: Implement term limits or a mandatory retirement age to ensure a steady flow of new perspectives. 

Mistake #2: Operating with Blurred Role Boundaries

This was the other major theme, appearing as "Failing to Understand Their Role," "Operating Without Clear Boundaries," and "The Operational Trap." This is the classic mistake of a board that either rubber-stamps management's decisions or, just as dangerously, micromanages the team.

The Consequences:

  • Strategic Abdication: The board gets bogged down in operational details and fails to provide long-term oversight and direction.
  • Frustration & Friction: When the board steps into management's lane, it demotivates the executive team and creates a toxic dynamic 
  • Ineffective Meetings: Board meetings become tactical updates instead of strategic debates 

How to Avoid It:

  • Formalise a Governance Charter: Document the specific duties of the board, its committees, the Chair, and the CEO. Make the distinction between governance (board) and management (CEO) crystal clear.
  • Structure Agendas for Strategy: Dedicate at least 80% of board meeting time to forward-looking strategy, risk assessment, and performance evaluation and not backward-looking operational reports.
  • Orient and Educate Continuously: Don't assume new (or even long-serving) directors understand their roles. Provide formal onboarding and ongoing training on fiduciary duties and governance best practices.

Conclusion: It All Comes Down to People and Purpose

While the list of potential board mistakes is long, our AI-aided analysis shows that most stem from two core failures. First, you need the right people in the room, a board that is strategically composed for the future and not just representative of the past. Second, those people must have a crystal-clear understanding why they are in the room: to govern, not to manage.

Get these two things, strategic composition and disciplined role clarity, right and you have created a foundation where strategic thought, responsible oversight, and a healthy culture can thrive. It seems simple, even obvious. And that’s what makes it so darn interesting.

About the author

Gary Haase

Content Manager