Design an Effective Board Performance Evaluation

Board Room with White Chairs

A regular board performance evaluation helps the board improve and execute better governance. These periodic performance evaluations can pinpoint pain areas that should be evaluated to increase the board’s effectiveness and the organization’s compliance purposes.

Here is a list of things to consider when designing an effective board performance evaluation.

Board Performance Evaluation

Set Clear Board Performance Goals

Every board assessment should have a clear and defined objective behind it. Board members must understand the reason for conducting the assessment. This way, the evaluation will yield tangible results and be meaningful for the entire board. Deloitte recently released a comprehensive white paper regarding the essential points and goals to consider when conducting a performance evaluation of the board of directors.

Assign a Leader for the Board Evaluation

To achieve maximum objectivity during the board of directors’ evaluation, an independent (outside) board member should lead the process. An outside director won’t be directly involved in the dynamics of the internal board members, thus will provide a more unbiased and valuable insight. They can act like an independent observer who is knowledgeable of the board’s inner workings.

Invite a Third-Party Facilitator

While an external board member is in charge of the board meeting evaluation survey, having an independent third-party facilitator can help to further improve the assessment. Independent perspectives are important to ensure a more holistic board performance evaluation.

An experienced third-party facilitator can lead the process and provide the board with valuable post-survey information regarding industry benchmarks on governance and other board qualities. The facilitator can also advise on best practices that will help improve the board’s overall performance based on industry standards.

Determine Topics and Questions for the Survey

Since no board is the same, there isn’t a single formula for structuring board evaluation questions. Therefore, tailor the survey questions and structure based on your board’s unique system, goals, and requirements. Make sure to also include questions that will help collect insightful information on a wide range of board-related topics.

The key board-related areas to consider when creating your board performance evaluation template are:

  • Board structure
  • Composition
  • Performance
  • Dynamics
  • Operations
  • Goals

Incorporating such areas into your survey can deliver a clearer view of how your board has worked and how the members practiced good corporate governance.

Organize One-on-Ones

Questionnaires and surveys can provide a great deal of insight into the board’s workings; however, one-on-one confidential interviews can offer more candid and detailed answers. This is where the help of a third-party facilitator comes in handy.

A third-party facilitator is more likely to have no considerations or biases. The facilitator will also have the know-how to structure one-on-ones and get the most optimal answers, considering the board’s structure and needs. These private meetings can be facilitated through a virtual meeting via secure video conferencing to ensure confidentiality.

Review the Evaluation Data

Whether the results of the surveys and interviews are favorable to the board’s performance or not, it is a must to analyze the results.

Board assessments offer a wealth of valuable insights that can guide your board to streamline processes and workflows. Assessments also reveal the state of the board dynamics, giving members a chance to improve their collective effort and generate better results.

The board members should also holistically analyze themselves and each other. Any issues that arise or have been discovered can lead to discussions between the members for possible solutions. In addition, a separate meeting can serve as a dedicated session to the board evaluation analysis.

Ensure the Evaluation Elicits Positive Changes

The survey results should serve as the foundation for further improvement across the various areas and activities of the board. That’s why scheduling separate board assessment meetings is so important.

Such meetings give the board enough time to analyze and discuss the findings openly and thoroughly. For it to be effective, the deliverable should be a clear action plan with outlined steps and strategies. Try to prioritize the issues and develop the action steps to promote improvement in the board’s performance.

Use Software to Streamline the Evaluation Process

The board performance evaluation process needs to be an organized and collaborative effort. Using software to conduct surveys or confidential one-on-one helps keep the process secure and structured.

Software, such as a board portal, features valuable tools you can use to perform an evaluation or internal board audit. Generally, such solutions can help board members:

  • Send survey and evaluation forms
  • Organize quick remote or virtual meetings
  • View analytical data and activities of each user
  • Store evaluation reports in a document repository
  • Analyze reports and survey results
  • Assign action items and create annotations
  • Create and distribute board packs or documents

Board Performance Evaluation and Assessment Improves Governance

Regular performance evaluations are a vital necessity of every well-performing board in organizations of all sizes. Performing these at a set scheduled time will increase accountability and enforce responsibility among the board members. Ideally, it prevents serious problems that could lead to an underperforming and dysfunctional board. An organization will perform better if the board itself performs well.

It is recommended to use a board portal such as Convene that has the tools to streamline your board performance evaluation process. A more efficient process will help motivate the board to undergo regular evaluations.

Learn how Convene can improve the board performance evaluation process of your board members. You can also get in touch with our team for more information.

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Tanecia Jackson
Tanecia Jackson

Tanecia is a current Chief Governance Officer at Convene with former experience working as a Cybersecurity Manager. She is a renowned advisor when it comes to corporate governance, board oversight, resource allocation, and risk management plans for organizations. In her work, she also helps shed light on strategies that can be done to ensure effective governance, while minimizing overall regulatory risk in the company’s cybersecurity projects.

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