Board Performance Evaluation and Director Appraisal
Good governance requires that the performance of the board be evaluated at least once a year.
The evaluation process is a mechanism to improve board effectiveness, maximise strengths and tackle weaknesses, leading to an immediate improvement of performance throughout the organisation.
When did you and your fellow directors review the performance of your board?
Good governance requires that the performance of the board be evaluated at least once a year.
The evaluation process is a constructive mechanism for objectively improving board effectiveness, maximising strengths and tackling weaknesses.
A quick and simple audit against estabished standards for directors and board processes (followed, of course, by appropriate action) can lead to an immediate improvement of performance throughout the organisation.
A well conducted evaluation helps the board, committees and individual directors perform to their maximum capabilities.
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Assess the balance and currency of skill within the board
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Identify attributes required for any new appointments
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Review practice and process to improve efficiency and effectiveness
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Consider the effectiveness of the board's decision making processes
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Recognise the board's outputs and achievements
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Make recommendations and compare performance with the recommendations from the preveious evaluation.
Evaluations can be undertaken at different depths, depending on budget and circumstances.
Board performance evaluation
Ideally, there should be a high level of personal contact with directors, secretary and administration. This should include examination of board minutes, board processes and regulatory submissions. There should be interviews with the chief executive, company secretary and the chair. Interviews can be undertaken in-person or over Zoom.
Our free assessment "Board Performance Evaluation" is an introduction to your current situation and provides a basis for discussing a formal evaluation.
Director appraisal
All directors, including the chair, should receive an appraisal at least once a year. This includes agreeing a specific role and contribution with the chair and setting goals for the future.
360 degree interviews can provide in-depth understanding of the contribution of individual directors. Personal interviews with the assessor are particularly valuable, but a less expensive approach is to use an online assessment system. Whichever method is adopted, individual responses should be fed back in an unattributable form.
Collated results should be presented to the board for discussion - and each participant should receive personal feedback, possibly as part of the appraisal with the chair.
Our free online assessment "How Effective are You as a Director?" could be a useful first stage in preparing yourself for a formal appraisal.
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