How to Conduct a Director Board Review
It is vital that the board conducts a thorough director review. The process must be clear and timely, but also help the board understand its strengths and weaknesses, so that it can improve the performance of the company.
It can be difficult to measure the performance of each director. The Chair’s contribution to the board has a huge impact on the other directors. It’s also challenging to compare boards due different strategies and company cycles as well as director refreshment policies.
The manner in which a director’s board review is conducted can influence the authenticity of the feedback. Some reviews are informal, like asking other directors for their opinion while others are structured, involving interviews with fellow directors, CEOs, SIDs, committee chairs, and the Company Secretary. The review can include observations made by a chairman during board meetings, including the inclusion level and information sharing, as well as the sharing of discussion.
It’s often helpful to use an external facilitator who is skilled in conducting these reviews. their neutrality can add accuracy and objectivity to the process. The first step is to begin the process by defining the goals for the review and defining the scope. The next step is to develop an action plan for how to assess the board and to collect insights from the stakeholders. This could include the distribution of questionnaires, interviews, document review and/or using board meeting management software.