Board Evaluation: How to Assess Your Board's Performance

Board evaluation assesses how well a board of directors is performing its governance role.

A good evaluation looks at whether the board is making sound decisions, working well as a team, and whether the processes supporting the board are fit for purpose. Done annually, it helps the board spot weaknesses, act on them, and track progress over time.

The approach will vary depending on the board. Common methods include self-assessments, peer reviews, and evaluations conducted by outside consultants. Boards may choose to evaluate individual directors, specific positions (such as the chair), committees, or the board as a whole.

When conducting a board evaluation, the first step is to identify the key areas that need to be assessed. These areas might include:

• the composition and structure of the board
• individual board member skills, knowledge and training
• diversity of the board
• board decision-making processes
• systems and processes supporting the board
• budgets that support the board
• communication and information-sharing practices
• board recruitment processes
• board reporting expectations and frequency
• subcommittee and other structure that support the board
• the board’s understanding and clarity on the organisation’s business model, strategic direction, risks, and strategic challenges,
• the board’s leadership and its impact on organisational culture
• the overall effectiveness of the board in guiding the strategic priorities of the organisation

Evaluations should also consider any significant challenges or changes the board has faced recently or expects ahead.

There is no single right way to run a board evaluation. Some organisations vary their approach each year, but it helps to establish baseline metrics so the board can track whether things are improving, staying flat, or declining over time.

Example Board Evaluation Questions

Below are some example board evaluation questions. These are certainly not comprehensive but are provided to give you an idea of where you could start.

Board Composition and Structure:

Does the board have the appropriate:

• mix of skills, knowledge and experience to discharge its duties effectively?
• diversity in terms of gender, ethnicity, age, and background, to ensure that it represents the interests of all stakeholders?

Decision-Making Processes:

• Is the board making decisions in a timely and effective manner?
• Is there sufficient discussion and debate among board members?
• Is the board using data and other sources of information to inform its decisions?
• Is the board engaging with stakeholders to understand their perspectives and concerns?

Communication and Information-Sharing Practices:

• Is the board receiving regular and timely reports from management?
• Is the board sharing information in a clear and transparent manner?
• Does the board have a clear understanding of the organisation’s strategic direction, risks, and challenges?
• Is the board able to communicate these effectively to stakeholders?

Overall Effectiveness:

• Is the board meeting its obligations and responsibilities?
• Is the board contributing to the success of the organisation?
• Is the board providing effective direction and leadership?

Acting on Evaluation Results

Completing the evaluation is only half the work. The real value comes from what the board does with the findings. Once results are compiled, the chairperson should schedule a dedicated session — separate from the regular board meeting — to discuss the outcomes openly. This session should identify two or three specific priorities for improvement rather than attempting to address every issue at once.

Each priority should be turned into an action item with a responsible person and a timeframe. For example, if the evaluation reveals that board papers are arriving too late for proper preparation, the action might be to set a firm deadline in the board calendar for paper distribution, with the company secretary accountable for enforcement. If the evaluation highlights a skills gap, the board might update its skills matrix and factor the gap into its next recruitment round.

Results from year to year should be compared so the board can track whether past actions have produced real change. A board that consistently identifies the same weaknesses without progress may need to consider an external evaluation to bring a fresh perspective and stronger accountability. Sharing a summary of evaluation outcomes with members or stakeholders — at an appropriate level of detail — can also demonstrate that the board takes its own governance seriously.

Further Board Evaluation Resources

The Path to Effective NFP Board and Director Evaluations

Practical Ways To Improve Boardroom Dynamics

Board Evaluation – Increasing the value-add of directors

How Well Is Your Board Managing its Scarcest Resource?

Difficult Conversations About Director Performance

Streamlining the Work of the Board