Why Undertake a Board Evaluation?

The tough decisions that boards make have a direct impact on the performance of their companies. Issues are complex, time is short and the pressure is on – often because of huge volumes of information, tricky relationships between board and management, unpredictable competitors, rapidly changing circumstances, and demanding stakeholders.
The stakes are now higher than ever. Even boards that are performing well today face the risk that just one slip can cause major problems and potentially damage their reputations.

Leading organisations, whether publicly listed, government or not-for-profit, are looking for ways to demonstrate that their governance is sound and improving. Stakeholders are increasingly demanding evidence of their boards’ competence and diligence. A comprehensive and credible board evaluation process, can provide stakeholders with the confidence that your board is consistently working to ensure it is delivering the best possible governance for your organisation.

As each board has its own unique set of circumstances, there are many reasons why a board may request our involvement – some of the more common situations include when a board is seeking to:

• ensure the board is maximising its value-add;
• design a program of improvement;
• improve information flow and relationships between management and the board;
• shape a board succession plan;
• comply with stock exchange or other requirements;
• promote the board’s professionalism and transparency by electing to publish the results
  of the review;
• minimise Directors’ and Officers’ insurance premiums; or
• build investor confidence as part of an initial public offering.