Most codes of governance allude to the need for regular appraisal of the board; it’s committees and members. However, it can sometimes be a challenge for organisations to keep on top of their appraisal cycle, let alone engage board members.
Compliance with a code of governance no matter which sector you are in, is crucial to the long-term success of the company. Therefore, we recommend that in order to ensure organisations are able to comply, there are certain activities that take place as part of your Board Effectiveness Review (BER) on an annual to biennial basis.
Basic skills audit
In order to assess the range of skills and experience of your board members, the basic skills audit ensures that you have a picture of whether or not the core skills needed in your sector are represented on your board.
Whole board appraisal
The whole board appraisal involves participation from all board members and is designed to solicit their views on various aspects of board performance, focusing on strategy, contributions, and meeting dynamics.
Committee appraisal
The committee appraisal offers members the opportunity to evaluate its performance, ensuring terms of reference are met and that the frequency of meetings provides sufficient due diligence.
Individual board member appraisals
Measuring the performance of board members helps the organisation to ensure they have the right people in place. These appraisals should be conducted by the chair and formally recorded.
Chair appraisal (in camera)
An in camera appraisal of the chair is a good way of identifying any concerns board members may have about the chair that cannot be expressed outside of this setting.
The appraisal process in all of its different facets is a key to unlocking the potential and performance of any organisation. Take the time to reflect on your process and what you need to do to ensure it is rigorous and robust.