How Board Management Effectiveness Reviews Can Improve Board Performance

As the leader board management effectiveness of your board you are responsible for making sure your board members have the knowledge they need to fulfill their duties and obligations. This includes making sure that the board receives the information it needs from management. This could be done by conducting periodic Board Effectiveness Reviews.

A thorough process for evaluating performance can help the board gain perspective on a range of issues that could hinder the board’s performance. These can range from operational complaints like the length of meetings or composition of agendas for board meetings to more complex concerns regarding the role of the board as well as the gaps in knowledge and expertise on the board. It could also indicate a need for new directors or changes to existing director assignments.

The board should be aware of the goals of the evaluation and lead the process, with help of senior managers that communicate with the board regularly. The board should be able to discuss the results and address any issues that arise.

A recent study that was based on 9 years of self-evaluation data for board members from a prominent Australian consulting firm specializing in survey research and corporate governance services. They identified 11 reliable elements that contribute to board effectiveness. Six of the factors corresponded specifically or mostly to Leblanc and Gillies’ (2005) “how” items, reflecting discrete process factors for how boards can function effectively. These include teamwork and communication within the board and the leadership of the chair committee leaders, efficient meetings, board self-assessment and efficient record-keeping and information management.