Why Most Boards Underperform and Why 2026 is the Year to Fix It

February 9, 2026 – Even the most capable boards can struggle to translate individual expertise into collective performance. If you spend enough time in boardrooms of any flavor, whether public, private, PE-backed, family-owned, or non-profit, you eventually notice a strange phenomenon, explained a recent report from Rob Andrews, founder and CEO of Houston, TX-based search firm Allen Austin. “Everyone is smart,” he said “Everyone is accomplished. Everyone has opinions. Yet somehow the board itself is rarely a high-performing team. In fact, some boards resemble a dinner club with nicer chairs and higher stakes.”

This is not just Mr. Andrews’ observation. The data backs it up in ways that make directors shift uncomfortably in their seats. McKinsey surveyed hundreds of directors and reported that only 22 percent believe their boards actually understand their company’s strategy. That means almost eight out of ten directors are participating in strategy discussions without feeling fully aligned on what the strategy even is. Only 16 percent believe their boards evaluate management effectively. Fewer than 30 percent believe their board has the right combination of skills, experience, and behaviors to govern well.

Stanford’s Corporate Governance Research Initiative added another gem. Forty-nine percent of directors think at least one colleague should be replaced. Yet almost no one is, because most boards are allergic to conflict and do not have the mechanisms to deal with underperformance, Mr. Andrews pointed out.

NACD’s most recent survey pushed the point even further. Less than half of directors believe their board composition aligns with the future strategic needs of the business. Only 29 percent think their board holds individual directors accountable. “And a clear majority admit they do not spend enough time on culture, talent, and organizational health,” Mr. Andrews said. “This is the stuff that actually drives value, yet many boards still treat it like a side dish rather than the main course. If a senior leadership team operated like this, most CEOs would hit the panic button. But when it happens in the boardroom, the standards mysteriously soften. It does not have to be this way.”

A Better Model. One That Actually Works.

The boards that perform at the top of their class do something unusual, they stop behaving like a collection of highly credentialed individuals and start operating like a unified leadership team, Mr. Andrews explained. “These boards understand their purpose,” he said. “They know their role. They do not get lost in the weeds. They support and challenge the CEO. They engage deeply with strategy, culture, and talent. And they hold themselves accountable just as they expect management to do. They also tend to enjoy their work more. It turns out that clarity, trust, healthy debate, and shared expectations create a much more pleasant experience than political maneuvering and passive aggression.”

Mr. Andrews pointed to the five following points:

1. Purpose. A shared, living purpose that answers the question, Why do we exist, and what value do we create for the enterprise?
2. Mission. Clear agreement on what the board must deliver consistently. Oversight. Strategic partnership. Discipline. Support for the CEO. Long-term value creation.
3. Vision. A shared picture of what a great board looks like and how it behaves. Not a fantasy. Not abstract governance theory. A practical operating system that everyone understands.
4. Values. Codified behaviors. How board members debate. How they show up. How they communicate. How they treat management and one another.
5. Strategy. Not a quarterly formality. The best boards help shape strategy, pressure test assumptions, monitor execution, and ensure alignment with the long-term purpose of the enterprise. Once a board gets aligned around these elements, decision-making improves, trust strengthens, the CEO partnership becomes healthier, and the organization benefits from more clarity. Boards begin to perform like the high-impact teams they were always meant to be.

The Hidden Flaw in Board Search

Mr. Andrews also discussed director recruitment. “Most board searches still begin and end with credentials. We need someone with aerospace experience,” he said. “Or a former CFO. Or a retired operator. That is usually where the thinking stops. High-performing boards approach this differently. They look at how a prospective director thinks. How do they behave under pressure? How they challenge without grandstanding. Whether they elevate the room or drain it. Whether they strengthen the culture or unintentionally destabilize it.”

Based in Houston, Rob Andrews is founder and CEO of Allen Austin, a leadership advisory and executive search firm. He leads Allen Austin’s global CEO, consumer packaged goods & durables practice, and is also a member of the firm’s leadership advisory, private equity, industrial and marketing officer practices. Building on his earlier career experience as an operating president with major convenience store and supermarket chains, Mr. Andrews conducts searches for board members, CEO, and senior officers across a broad range of sectors. 

“In other words, the best boards hire for chemistry, judgment, humility, and behavioral fit in addition to expertise,” Mr. Andrews said. “Because the wrong director does not quietly blend into the wallpaper. They warp the entire system. And the right one lifts the entire enterprise. Another area where many boards leave massive value on the table is CEO evaluation and development. Too many boards rely on vibes. If the company feels fine, the CEO must be fine. If something feels off, well, we will keep an eye on it. This is not governance. It is a guess.”

Related: Why Executive Hiring in 2026 Must Be More Strategic Than Ever

High-performing boards approach CEO stewardship with clarity, Mr. Andrews explained. “They set shared expectations,” he said. “They define transparent criteria. They use structured feedback processes. They give the CEO honest guidance and real support. They address blind spots and build momentum rather than waiting for issues to become crises. Done well, a CEO leaves board meetings with more clarity and more confidence rather than more anxiety and confusion.”

Where Facilitation Changes Everything

“Here is the thing most people never say out loud,” Mr. Andrews said. “Boards are complicated human systems. Personalities matter. Egos matter. Old disagreements matter. Social dynamics matter. Put ten brilliant people in a room, and you still need someone who can help them operate like a cohesive unit. A great facilitator can accelerate progress dramatically. Alignment sessions. Governance design. Clarifying roles. Codifying norms. Strengthening trust. Improving communication. Developing the board CEO relationship. Creating the operating rhythm that turns meetings into meaningful work rather than long agendas and short insights. Every board benefits from this kind of intentional work. The payoff is enormous.”

“The world is moving fast,” Mr. Andrews concluded. “AI is reshaping industries. Capital is tightening. Talent markets are shifting. Culture has become a strategic differentiator. Boards that want to stay ahead must raise their own game. The boards that evolve will lead companies that outperform. Those who do not may find themselves outmaneuvered by competitors who take governance seriously.”

Allen Austin is a top 40 global management consulting firm specializing in executive search and leadership advisory services. Founded in 1996, the firm partners with boards, CEOs and senior leaders of companies small and large, public and private, family-owned, private equity, venture-backed, domestic and international. Allen Austin has more than 30 partners managing client engagements from offices in 20 cities in North America, Latin America, Europe, Asia-Pacific and the Middle East.

Related: What are Boards Doing Differently for Better Executive Appointments in 2026?

Contributed by Scott A. Scanlon, Editor-in-Chief and Dale M. Zupsansky, Executive Editor  – Hunt Scanlon Media