Board Performance Evaluation
Evaluation and development of value-creation in your board of directors
The board of directors is responsible for the strategy and its realisation. The demands of customers and the surrounding world are increasing, and individual board members are increasingly expected to help ensure value creation – they must have the competences that are critical to the company, be able to think strategically and be able to challenge management on the business model. The demands from authorities and the general public have never been greater. Clear-cut, mandatory values are required since policies and accounts are prepared on diversity, CSR, etc.
In other words, board work has become a professional job. Professional boards increasingly require consultancy services and often in connection with regular evaluations to ensure that strategic direction, competences and structure support the company's strategic perspective, that the board cooperates efficiently, that the chairman and members provide a good board structure and have good cooperation with the management.
We contribute with experience from related and other industries as well as best practice, but always focus on the fact that your company’s own board must find its own style. We conduct Board Performance Evaluation in all types of industries and have extensive expertise in evaluating financial institutions and the strict requirements of the Danish Financial Supervisory Authority and foreign authorities in terms of knowledge and experience.
Timing is essential, and a process can be arranged in parallel with individual follow-up interviews between the board members and the chairmanship or in connection with an annual strategy seminar.
The individual process will always be customised to your needs and can be carried out in a few weeks, depending on the number of members and your annual cycle. The process below is typical for Board Performance Evaluations:
Organisational and stakeholder analysis
The first stage in a successful evaluation is to gain insight into the strategic ambitions and challenges of your company as well as how key industry factors and trends affect your business model and thus what is required of the board. This is done through initial interviews with selected key resources. We then provide input to designate specific areas that either prevent or facilitate efficient and value-creating board activities, which we will focus on in our evaluation.
On the basis of expectations for the board's skills and conduct, we will forward a customised survey in which board members can individually assess each other's work, their own work and that of the board as a whole. The survey often identifies issues such as the efficiency of the board, its processes, culture and conduct, committee work and interaction between its members, the chairman's role and responsibilities, interaction with the management and finally competences.
Interviews and development discussion
Results from the survey form the basis of interviews with the individual board members – either conducted by the chairmanship and/or us. The aim is to give feedback on the input from the survey and to ensure development of the individual member's contribution to the board.
Overall reporting and development themes
An overall report with results and development themes will conclude the process, after which the official report will be submitted. In terms of workshops, it is possible to choose between a purely informative meeting dealing with the results; however, many choose to expand the session with a workshop where the development themes are discussed, usually involving the company's values, board conduct and good governance.
The outcome is usually more efficient and professional board activities, characterised by better cooperation and dialogue that transcends operational issues, allowing the board to concentrate on development-related dialogue of a strategic nature.