Board Evaluation Services

If a company wishes to have strong and effective governance, board evaluation is critical. In order to be accountable and transparent to their stakeholders, both for profit and non-profit organizations will need to evaluate their performance on a regular basis. Board evaluation is distinct from program evaluation and is an important aspect of a board’s governance structure.

A board must ensure that benchmarks are in place in order to evaluate a board effectively and efficiently. The following are some of the benchmarks:

  • Having clear job descriptions on the board
  • Hiring capable senior personnel
  • Having a well-thought-out strategy

HOW IS BOARD EVALUATION DONE?

Board evaluation is done internally or externally in an organization.

  • Internal Board Evaluation

The board chair or a related committee of the board is in charge of internal board evaluation, which may include the use of survey techniques. Internal board evaluations often comprise one-on-one sessions between the chair and each of the organization’s directors.

Internally controlled evaluations/internal board evaluations have the following advantages:

  1. It is less expensive because it does not necessitate hiring a consultant.
  2. It is less stressful for the directors.
  3. It has a softer feel and a less rigid construction.

The following are some of the downsides of an internally controlled evaluation:

  1. Directors’ reluctance to discuss internal corporate matters. Stakeholders may not agree with the strategy because of the rigor with which the procedure was implemented.
  • The board’s externally supported evaluation

This is due to the use of an outside consultant, such as Qeeva Advisory, to oversee the board evaluation process. Engaging an external consultant is more expensive than implementing a procedure that is controlled internally.

An externally based evaluation procedure has the following advantages:

  1. It is more objective.
  2. It encourages directors and managers to be really honest.
  3. There is a level of comparison or benchmarking.
  4. An in-depth report will be provided.
  5. The consultant’s experience and exposure to other boards

Boards of directors frequently execute an externally guided board review process every 2 to 4 years, with a lighter touch internally managed procedure in the years in between.

WHY YOU NEED BOARD EVALUATION IN YOUR ORGANIZATION

An organization’s board evaluation is linked to planning and is directly related to accomplishing the outcomes and results outlined in the board’s strategic plan. It is not advisable to wait until your board is in disarray before conducting an evaluation. Continuous governance improvement is the immediate goal of a board evaluation, which may be accomplished by recognizing board performance improvement opportunities and governance framework.

An evaluation will reveal warning indicators as well as further information about whether your board is off course. When the board of directors is evaluated, the organization becomes a high-performance organization with the following characteristics:

  • Clarity of roles
  • Positive relationships with key stakeholders
  • Good financial stewardship
  • Effective and efficient use of resources
  • Clear lines of accountability
  • Board engagement in strategic planning
  • A customer and results focus
  • Competent board and staff leadership
  • Developing team work
  • Better decision making,
  • Improving the effectiveness of meetings, gaining greater
  • Low levels of internal conflict
  • Perceived legitimacy and credibility
  • Providing accountability to individual board members, staff, clients, its membership and the broader community it serves
  • Good meeting management
  • An organizational culture that encourages good teamwork, respect for organizational norms, values staff, and encourages excellence

Board evaluation is a vital part of measuring the efficiency, effectiveness and client satisfaction of an organization

WHO WE ARE?

  • With over 18 years of experience in board review processes in numerous firms, Business Cardinal is a member of the Matog Consulting group. When it comes to implementing board evaluation procedures, we act as external advisors for businesses. We will collaborate with your board of directors, offering succinct understanding and guaranteeing that we provide long-term results. You should contact us to implement your board evaluation process because:
  • We establish relevant methods at the right time and ensure their efficacy.
  • We put in place strong rules and procedures, as well as the size, structure, and experience of the Board of Directors, as well as management of the financial reporting process and internal controls.
  • Willingness to learn about the organization and its operations by devoting time and effort
  • Awareness about the latest developments in the areas such as corporate governance framework, financial reporting, industry and market conditions
  • Years of experience and expertise are at our disposal

OUR BOARD EVALUATION PROCESS

The board evaluation process that Business Cardinal is implementing will look into the accomplishments of the board and how they were accomplished. During our board evaluation process, they must carry out the following obligations when reviewing an organization’s board of directors. The following are some of the board’s responsibilities:

  • Management of the Board of Directors (meetings, roles of individual directors, committees, etc.)
  • Goals, mission, and strategic plan of the board (recruitment and orientation process, governance structure)
  • Senior management (i.e., Executive Director)

We use the following procedures for evaluating the board of directors.

  1. Determine the evaluation’s purpose.

This is done by us to see if the current structure in place in your company is still an effective way to run things.

  1. Set up an evaluation structure

We’ll collaborate with the board to put in place an effective evaluation system. There will be a self-evaluation mechanism developed.

  1. Create an evaluation plan.

Business cardinal will have access to tools that will help us assess the effectiveness and efficiency of the board decision-making process, the current level of board involvement in daily organizational operations, and the authority relationship that exists between the board and the organization’s staffs.

  • Gather information

A questionnaire will be used to collect information on the organization from individual board members and senior staff. The questionnaire will be used to anonymously collect data, and a focus group with the entire board will be arranged.

  1. Analyse information

After all information has been gathered, we will summarize it and it will be presented to the board as full detailed report.

  1. Action and implementation

The organization’s action and implementation plan will be based on the results that have been submitted. Based on the information gathered, data analyzed, and report compiled, the company will determine whether to keep its current governance structure or study another model that will fit within the organization’s culture.

The board improvement action plan, like all performance appraisal approaches, should include specific and measurable KPIs, and the chair of the board, or a relevant committee of the board, should be responsible for overseeing its implementation over the next year, perhaps with the help of the company secretary.

Underperforming directors should be closely counseled by the chair or, in circumstances where there are concerns about the chair’s performance, by one of the appropriate directors, as identified through the board review process.

BOARD EVALUATION METHODS/TOOLS

We will use two ways for the externally supported evaluation method at Business Cardinal. The approach to be used varies depending on the organization’s size and maturity, as well as the difficulties that the board is dealing with. These are some of the methods:

  • Methods based on interviews:

Interview-based methods are qualitative in nature, and they are useful for diving deeply into the complex board or management dynamic, as well as often sensitive interpersonal connections. • Interview-based methods: A one-on-one interview and a pair interview will be used to determine how well the board members understand each other.

  • Survey-based methods:

The survey-based methods are often quantitative, and this approach aids in focusing the attention of participants in the evaluation process, as well as providing benchmarking of outcomes over time. The survey approach will primarily focus on the organization’s directors in order to assess the board’s performance on a numerical scale in connection to numerous issues.

We will be able to carry out an effective board evaluation procedure by combining the two processes. Executives, board members, and other members of the management team must provide input.

BOARD EVALUATION QUESTIONS

A series of questions will be asked during a one-on-one interview with board members (personal interview), pair assessment interview, focus groups, surveys, and questionnaires when performing the board evaluation.

Self-assessment interviews will be conducted, and the self-assessment can comprise the following items:

  • The satisfaction level of meeting participation
  • The percentage of meetings attended over the year (or term)
  • The satisfaction level of meeting preparation
  • The success level of meeting the criteria laid out in the board job description
  • Personal strengths and weaknesses

Other related questions are;

  • How it operates within its mission, goals and bylaws
  • Board members’ understanding of their roles and responsibilities
  • Board job descriptions
  • The work of committees and their terms of reference
  • Recruitment and orientation practices
  • Evaluation procedures for senior staff and individual board members
  • Accomplishments and actions taken that relate to the organization’s strategic plan
  • How it operates within its mission, goals and bylaws
  • Board members’ understanding of their roles and responsibilities
  • Board job descriptions
  • The work of committees and their terms of reference
  • The composition and structure of the board
  • Risk management policies and safeguards
  • Recruitment and orientation practices
  • Evaluation procedures for senior staff and individual board members
  • Accomplishments and actions taken that relate to the organization’s strategic plan

INDUSTRY SERVED

  • Oil & Gas
  • Government agencies
  • Health Care
  • Finance & Insurance
  • Power
  • Agriculture
  • Transport
  • Trade: Import & Exports
  • Manufacturers
  • Service Providers
  • ICT
  • Mining
  • Utilities
  • Entertainment
  • Real Estate
  • Professional & Technical Services
  • Market
  • Construction

WHAT WE WILL EVALUATE IN A BOARD EVALUATION PROCESS

The purpose of board evaluation is to determine the board’s efficacy and efficiency, as well as the effectiveness and efficiency of its component sections. These are the board’s component parts that will be analyzed, and the potential parts for examination include the following:

  • The Board of Directors

The board as a whole will be evaluated to see how well it functions, how well it communicates with management and staff, and how well it can carry out its strategic plan and governance responsibilities.

  • The committees of the Board of Directors

The board’s committee will also be evaluated in order to learn more about their structure and how well they work in supporting the board’s mission.

 

  • Individual Directors

This category will also be assessed in order to ascertain how well the directors perceive themselves and how they are all contributing together positively and effectively to the work of the board. This includes how well their contributions to the board can be improved upon.

  • The chair of the board and the chair of the committees

This will evaluate how well the chairs of the various organizations carry out their duties and responsibilities.

Experienced and competent Board members have realized that conducting brief, realistic reviews of the quality of their Board’s operations on a frequent basis, and then attending to the findings of those evaluations throughout the year, is vital. Board members frequently have no idea what they don’t know about their own board. Consider the possibility that the board is ineffectual and has slipped into a rut in their activities without realizing it.

  • Business Cardinal will ensure that your organization receives the best and most successful board evaluation implementation possible. You can reach us at 08023200801, 08075765799, for additional information.

If you would love to engage us for this service, please call us on 08023200801 or request us to send you a proposal by email to hello@businesscardinal.com or complete our customer enquiry form for more details.

 

     

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