Board Performance Reviews, also known as board evaluations, are an important tool to support boards, helping to ensure continuous improvement in governance and board-level decision making. If performed effectively, they foster accountability, enhance decision making and help organisations align strategic objectives.
A board performance review is a method of measuring the effectiveness of a board. In the UK, all FTSE 350 companies must undertake a review facilitated by an independent expert every three years, supplemented by an annual review. In other sectors, it has become standard practice for all organisations to assess the quality of their boards. Board performance reviews have led to increased investor and public confidence in the effectiveness of boards and better decision-making.
Generally, board performance reviews will examine the culture of the board, its structure, strategy and reporting functions. They are often facilitated by an independent adviser or service provider who will tailor the review depending on the size and sector of the organisation in question.
In the past, there has been little, if any, quality control over the providers of reviews, leading to some scepticism in the market that they are all good value for money. The Chartered Governance Institute UK & Ireland has created a suite of resources, alongside training courses and a directory of accredited suppliers to bring more assurance to the board performance review process, without being prescriptive about how reviews are conducted.
The governance professional, board and board reviewer all have important roles to play in performing an effective board review.
The Institute offers market leading training and an accreditation scheme for board reviewers. CGIUKI accreditation is intended to enable you to find the right supplier for your organisation. Our rigorous standards are designed to provide reassurance to your organisation as to the quality of the listed suppliers.
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