February 10, 2010
Board Evaluation: Good, Bad and Ugly
Though many public companies are required to do an annual board evaluation, there is no rule that says they have to do it right. Many boards have found their way through the board evaluation process and are looking for the next step. Part of the presentation I give to audiences that want to learn more is a good, bad and ugly review on board evaluation. Bottom line – there is always room for improvement. Questions directors might ask when reviewing the board evaluation process:
1.Is the board evaluation part of a strategic management system to guide measurement and improvement of board performance?
2.Does it include compliance, functional, behavioral and attitudinal questions?
3.Do we have a 'board centric' approach that includes the board having control over the process and a facilitator to help the board create an action plan to address areas that need improvement?