As the leader of a group, you have the responsibility of making sure that your board members have the necessary information to fulfill their roles and obligations. This means ensuring that the board receives the information it requires from the management. This is usually done by conducting regular Board Effectiveness Reviews.
A robust evaluation process will assist the board to gain an understanding of a variety of issues that could be hindering the performance of the board. They can range from simple operational complaints like the length of meetings or the agendas of the board to more complex concerns about the board’s role and the insufficient knowledge and abilities on the board. It could also signal a need for new directors or adjustments to existing director assignments.
The board should be clear about the objectives of its assessment 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 address any issues that arise.
A recent study based on nine years of self-evaluation data for board members from a top Australian consulting firm that specializes in survey research and corporate governance services. It revealed 11 reliable factors that contribute to the effectiveness of boards. Six of the variables were purely or primarily Leblanc and Gillies (2005) “how” item, indicating distinct processes for how boards can operate effectively. These include effective meetings, internal communications, teamwork, leadership from the chair, and efficient record-keeping and information management.
