It is well accepted that assessing the skills, experience and dynamics of a board and its directors is key in strengthening overall board performance. Ongoing evaluations can determine whether a board is providing effective governance and leadership. In monitoring a board’s performance, both strengths and areas for development are identified and can be addressed for future improvement.

In addition, with increased attention on corporate governance and accountability, there is a growing expectation that the performance of boards and individual directors will be regularly appraised. What’s more, ASX Principles have called for every listed company to carry out evaluation of the performance of its board, board committees and individual directors, and to disclose the method of evaluation.

Traditional methods of evaluating board success, such as share price growth, CEO performance and the success of initiatives like strategic acquisitions are being steadily augmented by more formal and objective appraisal mechanisms. Because board performance contributes to the success of an organisation and is often regarded as one of its strategic assets, a board must ensure it has the right mix of skills and knowledge to work effectively in its current environment and to meet upcoming needs and challenges. In regularly evaluating and assessing a board and individual directors, boards can monitor the effectiveness of its performance by regularly reviewing its composition, governance and internal processes.

Finding a Board Evaluation Service Provider

We recognise the value in assessing board and director performance and have compiled a list of board and director performance evaluation service providers as a resource for our members and their boards.
Click here to view the list of providers: Board Evaluation Services