Board Self-Assessment plays a crucial role in the board’s duty to evaluate and improve its performance. Often, boards are tasked to review their own performance to ensure that they align the board’s abilities and expertise with company strategy and meet investor expectations for diversity. Boards should also conduct a comprehensive review every two years.
The process of conducting a self assessment by the board could be a challenge. It may be difficult for board members to devote time to this process as many have not done this before. Moreover, many boards struggle to find the ideal balance between the demands of their job and their board’s duties.
To ease the process to make the process easier, it’s best to engage a board governance consultant who can assist with the entire process from start to finish. The consultant will create a survey, distribute it and continue to collect feedback. They will also review the data and decide on the most pertinent insights, then bring them back to the board to discuss.
The board should utilize the results to clarify its own expectations. This will reduce any confusion over the role of a board member and the way they are expected to do their job. This assessment can also help identify areas where further training is required. It may also help clarify expectations for directors in their personal lives, which is important for those who work full-time.