As the leader of a board, you have the responsibility of making sure that your board members have the necessary information to fulfill their responsibilities and responsibilities. This includes ensuring that the board is getting what it needs from management. It is ideal to conduct regular Board Effectiveness Reviews.
A robust evaluation process will aid the board in getting an understanding of variety of problems that could be hindering the performance of the board. They can range from operational issues like the duration of meetings or compositions of board agendas to more complicated concerns about the role of the board and the insufficient knowledge and abilities 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 goals of its evaluation and should guide the process – with the support of senior management who interact with the board regularly. The board should be able to discuss the results and to address any issues that arise.
A recent study based on 9 years of board self-evaluation data from a leading Australian consulting firm specializing in survey research and corporate governance services. It revealed 11 reliable elements that contribute to board effectiveness. Six of the factors were solely or mostly Leblanc and Gillies (2005) “how” item, which is a reflection of distinct ways for boards to function effectively. These include effective meetings, internal communications, teamwork and leadership from the chair, and efficient record-keeping and information management.