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Evaluating Director and Board effectiveness

Evaluating Director and Board effectiveness

Coulson-Thomas, Colin (2021) Evaluating Director and Board effectiveness. Management Services Journal, 65 (4). pp. 29-35. ISSN 0307-6768 (Print), 0307-6768 (Online)

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From time to time management services practitioners may be asked to either undertake or participate in an evaluation of director and board effectiveness. Many boards seek help with evaluations, for example to encourage and assist more critical, selfless and self-aware self-assessment by individual directors and a board collectively. When confronted with a first assignment, a practitioner should remember that the board itself should be concerned with efficiency in the use of a company’s human, financial and other resources and effectiveness in the achievement of corporate purpose, goals and objectives. Evaluations of director and board effectiveness should be formal, rigorous and objective and address reality. Assessors should be alert to common failings and danger signals, cover governance arrangements and embrace stakeholder views. Assessment criteria used and areas reviewed can be particularly revealing.

Areas to consider to improve the value of evaluations include their scoping, frequency and support; incorporating independent views; directorial experience, qualities, knowledge and skills; how evaluations are conducted, including of board meetings and informal activities between them; evaluation challenges and how to ensure balanced assessment; evidence and measures of performance; the consideration of evaluation findings and how they are used; and the periodic review of the evaluation process. Evaluations are sometimes undertaken quickly to satisfy a governance requirement, but effective evaluations can provide opportunities to reflect, review, re-think, re-calibrate and refresh, identify areas for improvement and trigger exploration, renewal and development. They can create further opportunities for practitioners.

Item Type: Article
Uncontrolled Keywords: Director and Board evaluation, evaluating director and board effectiveness, management services practitioners, board reviews, assessment, efficiency, effectiveness, board competences, directorial skills, directorial qualities, effective and competent directors, effective and competent boards, measurement, assessors, danger signals, stakeholder views, assessment criteria, board meetings, assessment criteria, director experience and knowledge, measures of performance, governance arrangements, director and board development, governance, corporate governance, boards of directors
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
H Social Sciences > HG Finance
Faculty / School / Research Centre / Research Group: Faculty of Business
Faculty of Business > Centre for Work and Employment Research (CREW)
Faculty of Business > Centre for Work and Employment Research (CREW) > Leadership & Organisational Behaviour Research Group (LOB)
Faculty of Business > Department of Human Resources & Organisational Behaviour
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Last Modified: 13 Dec 2021 12:57

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