How Board Management Effectiveness Reviews Can Improve Board Performance

How Board Management Effectiveness Reviews Can Improve Board Performance

As the leader of a group, you are responsible for making sure your board members are armed with the knowledge they need to fulfill their duties and obligations. This includes ensuring that the board is receiving what it requires from management. This could mean conducting regular Board Effectiveness Reviews.

A thorough evaluation process can aid the board in getting an understanding of a variety of issues that could be affecting the performance of the board. These can range from operational issues like the duration of meetings or agendas of the board to more intricate concerns about the board’s role and the gaps in knowledge and expertise on the board. It could also signal a need for new directors, or adjustments to directorships already in place.

The board should be clear on the purpose of the evaluation and guide the process, with help of senior managers that interact with the board regularly. The board should be able to discuss the results and address any issues that arise.

A recent study based on 9 years of self-evaluation information for boards from a leading Australian consulting firm specializing in survey research and corporate governance services yielded 11 reliable factors that contribute to board effectiveness. Six of the factors were purely or specifically Leblanc and Gillies (2005) “how” item, which reflects distinct processes for how boards can perform effectively. These include internal communication and teamwork and the leadership of the chair committee leaders, efficient meetings, self-assessment of the board and efficient record-keeping and information management.

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