Board Self-Assessment is a method for analyzing and discussing the strengths and weaknesses of governance. It’s a way for the board to step back and candidly assess its own effectiveness, which results in effective governance improvements.
Planning, time and engagement of board members are essential for a successful board evaluation process. The first step in determining the scope is to determine the audience for the evaluation. This could include the entire board, specific committees, and/or individual directors. A good plan should also Corporate Communications Policy define the method of evaluation. Common methods include surveys, interviews or facilitation of discussions. Once the scope and methodology for evaluation are established, it’s time to start designing and distribution of questionnaires.
Some boards decide to conduct the evaluation internally and some choose to hire a third-party consultant. A third-party consultant will help ensure an objective and thorough analysis, which is important for those who do not have the time or resources to do the evaluation yourself.
It is essential that board members review themselves. However it is equally crucial that nonprofit boards pay attention to the entire group. It is easy for nonprofit boards and their evaluation facilitators to become absorbed in assessing the individual’s responses and not pay attention to the board in its entirety.
A successful self-assessment helps boards clarify expectations, reveal gaps in the composition of the board and align knowledge of the board with organizational strategy, address concerns of investors about diversity and turnover and improve the effectiveness of board procedures and practices. In their proxy statements, public companies report the results of their board’s evaluations.
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