In this section
The UK Governance Code, which many organisations regard as the ‘gold standard’ for governance points to the importance of “formal and rigorous annual evaluation of the performance of the Board, its committees, the Chair, and individual directors.”
A good practice highlighted is to have periodic regular externally facilitated Board Evaluations. For our clients with a FTSE 350 or above listing, the Guidance suggests should happen at least every three years.
The Guidance also points to the importance of Board Evaluations in informing and influencing succession planning. Such Evaluations should be both thorough and rigorous and they “should explore how effective the Board is as a unit, as well as the quality of the contributions made by individual directors”. The result is to provide an opportunity for boards to review skills, assess their composition, and to agree plans for filling skills gaps and increasing diversity. They can help companies identify when new board appointments may be needed and the types of skills that are required to maximise board effectiveness.
To be of most value and relevance to you, the Board Evaluation we undertake is tailored to the specific environment and operating style, as well as strategic goals and challenges faced by your Board. These would be ascertained from a confidential survey of all Board members and would consider themes such as:
We conduct private, individual conversations with all Board members and relevant stakeholders. We also include a confidential observation of a Board meeting, if desired, in order to provide a complete picture.