As the leader of a board, you are responsible for making sure your board members have the necessary information to fulfill their responsibilities and responsibilities. This includes ensuring the board receives what it needs from the management. This is usually done by conducting periodic Board Effectiveness Reviews.
A thorough process for evaluating performance can help the board gain perspective on a variety of issues that may hinder board performance. They can range from simple operational complaints like the length of meetings and the compositions of board agendas to more intricate concerns about the role of the board and the lack of knowledge and skills on the board. It can also highlight the need for new directors or changes to directorships already in place.
The board should be clear on the goals of its assessment and should lead the process – with the support of senior managers who communicate 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 nine years of board self evaluation data from a renowned Australian consultancy specializing in corporate governance and survey services, identified 11 reliable elements that are a contributing factor to the effectiveness of boards. Six of these factors correlated exclusively or predominantly to Leblanc and Gillies’ (2005) “how” items, indicating distinct process elements that influence how boards can function effectively. These include internal communication and teamwork as well as leadership by the chair, committee leadership, effective meetings, self-assessment by the board, and efficient record keeping and information management.