Why Should Your Board Conduct an Annual Performance Review?
The performance of the Board is critical to the success of an organisation. The Board is an important strategic asset and should reflect a diverse mix of skills and knowledge with a culture of respect, transparency and accountability that encourages constructive debate
Board performance evaluation is not about critiquing one another but is an opportunity to continuously improve the governance practices of the organisation. It gives the group an opportunity to provide constructive feedback to the board as a whole and ensure the board work as effective as it possibly can be for the good of the organisation.
A periodic Board assessment process allows an opportunity for the Board members to reflect, plan and implement improvement initiatives and identify training & development needs.
An External Board Performance Review can include:
· An online survey with rating scale
· Assessment and analysis of performance of the Board, individual directors and the Chairperson
· Individual one-on-one interviews with Directors and Executive Management
· A facilitated sessions and presentation to the Board to prioritise initiatives to guide an Action Plan
· Board Performance Evaluation Report with 12 month Action Plan
It is common practice for boards to run externally facilitated board evaluations every 2- 4 years due to the benefits of greater objectivity and independence.
Once the board performance evaluation is completed, an action plan should be created prioritising the agreed areas to focus on for improvement initiatives.
An external review gives an independent and outside perspective that can help to identify and draw out the key areas that should be focused on for performance improvement.