EDITORIAL: VIEWPOINT - LOOKING IN THE MIRROR

Board evaluations are a useful tool for ensuring that a board is operating effectively and with maximum impact, provided that everyone takes them seriously and participates honestly and openly. External board evaluations in particular can add enormous value if done well.

Egon Zehnder have used their experience of conducting over 500 board evaluations across various organisations, sectors and regions to identify some key attributes that successful board evaluations have in common.

Comprehensive

Board effectiveness is determined by two sets of factors, processes and behaviours. Amongst other things, processes include agenda setting, board leadership structure and committee operation and behaviours include competency gaps, quality of discussion and alignment with stakeholders. A good evaluation will address both aspects.

Independent external reviewer

Internal board evaluations certainly have their place, but at least once every three years it is helpful for a board to have an externally facilitated evaluation run by experts who have a deep understanding of behavioural interview techniques that enable them to probe the specific factors defining board dynamics. External reviewers also offer a breadth of experience as a result of conducting several reviews across many different boards which puts them in a better position to recommend best practices, warn against common pitfalls and offer proven solutions to challenges.

Provide concrete insights

A board evaluation should provide concrete insights on ways in which the board can improve its performance and specific suggestions for ways in which these can be achieved which the board can then follow up and monitor progress against.

A positive experience

The ever-increasing scope of board responsibilities means that a board rarely has the opportunity to reflect upon itself as a team and consider the organisation’s needs and performance. The chance to speak with informed listeners in a confidential environment commonly uncovers subtle or inadvertent ways in which the board may be undermining its performance. Egon Zehnder say that these discoveries— and the confidence that comes from knowing that issues have been identified and can be addressed— leave board members with a renewed commitment to excellent corporate governance, greater group cohesion and a shared vision of purpose.

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