Reviewing Your Board
A Guide to Board and Director Evaluation
Does not imply availability
Description
No individual or team can expect to improve without obtaining regular feedback on their performance. Boards of directors are no exception and an effective board performance evaluation is an invaluable tool in improving your board's performance. An effective evaluation process can be designed to address the performance of the board as a whole, the chair, individual directors, board committees and other governance support staff. Such reviews are widely recommended in various governance standards, by contemporary writers on corporate governance and by leading practitioner organisations, such as the Australian Institute of Company Directors. There is a wide range of considerations in undertaking these evaluations. For example, what aspects of the board activities should be reviewed; how frequently should such evaluations take place; should they be conducted internally or by an external party; who should be evaluated; by whom; how does a board bring about change resulting from an evaluation and how does the organisation communicate the results? Geoff Kiel and Gavin Nicholson authored a widely-used book addressing these and other questions over a decade ago. Now joined by two colleagues, James Beck and Jennifer Tunny, who also have extensive experience in board evaluations, this revised text provides a practical guide to all the questions, issues and techniques involved in undertaking successful board and director evaluations. It contains numerous examples and tools. The book will be essential reading for all chairs, directors, company secretaries, chief executive officers and consultants in corporate governance.
AI Overview
"Reviewing Your Board: A Guide to Board and Director Evaluation" is a comprehensive guide written by Emeritus Professor Geoffrey Kiel FAICD, Associate Professor Gavin Nicholson FAICD, Jennifer Tunny, and James Beck GAICD. The book provides practical advice and an easy-to-implement framework for boards to evaluate themselves and assess their governance practices.
Key Themes
Setting Objectives:
- The book emphasizes the importance of clearly identifying the board's objectives to set specific goals for the evaluation process. This stage helps in focusing the review and ensuring that it is aligned with the board's primary motivation[1].
Who to Evaluate:
- The authors discuss the various groups that should be evaluated, including the board as a whole, board committees, individual directors, the chair, committee chairs, lead independent directors, and the company secretary[1].
Evaluation Framework:
- The book outlines a structured approach to board evaluations, including understanding the benefits and costs of reviewing different groups, balancing these factors to reach a decision, and planning the evaluation process[1].
Types of Evaluations:
- It covers traditional board reviews, skills analysis, and maturity assessments, highlighting the importance of combining these approaches to get a comprehensive understanding of the board's performance[1].
Implementation and Change:
- The authors provide guidance on how to bring about change resulting from an evaluation, including communicating the results effectively within the organization[4].
Plot Summary
The book is organized into several chapters that guide the reader through the process of evaluating a board. Key chapters include:
- Chapter 3: Setting Objectives - This chapter delves into the importance of setting clear objectives and understanding the primary motivation behind the review.
- Chapter 4: Who Will Be Evaluated? - This chapter outlines the various groups that should be evaluated and provides a framework for deciding who to include in the evaluation process.
- Chapter 5: Combining Complexity and Scope - This chapter discusses how to balance the complexity and scope of the evaluation to ensure it is comprehensive and effective.
Critical Reception
The book has received positive reviews for its practical advice and structured framework. It is considered essential reading for chairs, directors, company secretaries, CEOs, and consultants in corporate governance. The AICD describes it as a "practical guide to a wide range of considerations in undertaking these evaluations" and highlights its usefulness in answering the question: "Are we carrying out good governance?"[4].
Overall, "Reviewing Your Board" is a valuable resource for any organization looking to improve its governance practices through effective board evaluations. Its comprehensive approach and practical tools make it a go-to guide for those seeking to enhance their organizational governance.