How to Conduct a Director Board Review
It is crucial that the board conducts an effective director review that is effective. The process should not only be transparent and prompt, but it should also assist the board to understand what its strengths and weaknesses are in order that it can improve its performance and therefore that of the company.
The measurement of the performance of individual directors isn’t always easy. The Chair’s contribution to the board can have a major impact on other directors. It’s also difficult to compare boards due variations in strategy the company’s cycle, as well as director refreshment policy.
A director board review could take many forms and the way that a review is conducted will influence the degree of honesty that feedback will be. Some reviews are informal – simply canvassing the opinions of other directors, whereas others are more structured such as interviews with other directors as well as the SID the CEO, the committee chairs, and the Company Secretary. The review could include observations made by a chairman at board meetings, including the degree of inclusion as well as the sharing of information and the discussion sharing.
It is often advantageous to hire an experienced facilitator external to conduct these reviews. Their neutrality can provide additional rigor and objectiveness to this process. The key is to begin the process by setting the goals for the review and defining its scope. The next step is to develop the plan to evaluate the board, and to collect insights from those involved. This could involve the distribution of questionnaires, interviews, document review and/or using board meeting management software.
