Building Effectiveness with Board Evaluations

How can boards of directors best evaluate their own performance annually, and, just as important, how can those evaluations pave the way to build a more effective board consistent with the company’s long-term strategies?  It’s a mistake to view board performance evaluations as a grating, administrative burden for board members. Instead, annual assessments should be seen as a rare opportunity for boards to see where the board’s performance is strongest and where it needs strengthening.  It also helps to unearth important issues which the board may need to address to mitigate risks or to resolve potential problems.

Naturally, there are many ways to handle board evaluations, but we believe one of the most helpful elements is to bring a neutral third party to help facilitate the performance review process.  This will help to ensure that directors do not feel constrained in any way or embarrassed to give their candid feelings when their thoughts are surveyed – and will ensure that the feedback provides a useful basis upon which to build and grow board competence.