Board Self-Assessment gives a framework for analyzing and discussing the strengths and weaknesses of governance. The board can take advantage of it to step back and honestly assess its own effectiveness. This will lead to better governance.
Time and planning, as well as the engagement of board members are required to develop an effective board evaluation process. The first step is determining the scope of the assessment. This could include the entire board, a specific committee or individual directors. A good plan should also define the method of evaluation. Surveys, interviews or facilitated discussion are common methodologies. Once the extent of the evaluation and the methodology have been determined the next step is to create and distribute questionnaires.
Some boards decide to conduct the assessment internally, while others hire an outside consultant. A third-party consultant can ensure a thorough, impartial analysis, which is particularly important if your board lacks the time or the resources to conduct the assessment on their own.
While it is crucial for board members’ evaluation themselves, it’s equally important for boards of nonprofit organizations to focus on the group as the whole. It is easy for board members of nonprofit organizations and their facilitators to get focused on evaluating individual responses and neglect the board as a unit.
A successful self-assessment helps boards better understand their expectations of each other, identify deficiencies in board composition, align board expertise with organizational strategies and address concerns of investors about diversity and turnover, and improve the effectiveness of board procedures and practices. In their proxy statements, public companies publish the results of their board’s assessments.
