An effective board is essential for all firms, in the eyes of the regulators, as it is seen as central to corporate governance standards. Having an effective board is also desirable for firms themselves as they are known to contribute to better results.

So firms understand the importance and benefits of undertaking board evaluations, and most will have been told that externally validated evaluations are the most effective. However, an effective evaluation carried out by an external facilitator can be expensive, time consuming and sometimes even viewed as disruptive. But knowing the positive impact these have on your firms performance you’d prefer to find an effective way to run your own effective board evaluations on an regular basis.

Conducting effective evaluations on a regular basis can help improve performance on three levels:

• Organisational
• Board
• Individual development

That sounds great but, as a firm, how do you know your internal evaluations are providing improved performance across all three levels? We hear the same following questions from clients, do any sound familiar?

• How effective are our board and committees?
• What should we look for when evaluating the effectiveness of our board?
• Who should we engage with to complete a meaningful evaluation?
• How can we ensure the evaluation process and outcomes remain positive and constructive?

The Course Agenda

Consider how an effective Board Operate

• Strategic leadership
  • Board structure, composition and development
  • The role of the Chairman
  • Strategic Planning and performance measures
  • Board time – in and out of Board/committee meetings
  • Culture and values

• Oversight and Governance
  • Committee structure, TORs and governance processes
  • Agenda management, actions and outcomes
  • Management Responsibilities MAP (MRM)
  • SMF role holders and prescribed responsibilities
  • Statements of Responsibility (SoR)

• Information and communication
  • Information sources, board packs and other MI
  • Informed decision making and challenge
  • Information flows, external briefing and reporting
  • Internal Communications

• Competent performance
  • Board / Committee appointments, roles and responsibilities
  • Competence standards, assessing and maintaining, including FIT criteria
  • Induction, training and professional development
  • Performance Appraisal

Understanding how to assess and evaluate these effectiveness criteria

• Guidance and direction on internal evaluation methods and good practice which will enable a firm to assess board effectiveness in areas such as :
  • The governance control framework
  • The mix of skills, experience and diversity of the Board
  • The effectiveness of CPD and professional development undertaken by the Bard
  • Leadership style and supportive environment provided by the Chairman
  • Working together effectively, Individuals and their level of contribution
  • The quality of information provided to the Board
  • The speed and effectiveness of decision making
  • The balance of discussion and time spent on strategy and governance
  • The recording and reporting undertaken
  • Understanding and satisfying appropriate regulatory requirements
  • Communication style and methods

Understanding hot to use the information to Identify areas for improvement and build an action plan

• Recognise strengths and areas for improvement
• Establishing priorities
• Engaging as a team to construct an Action Plan
• Success measures, timeline and progress reviews