Board Self-Assessment is a critical board function that provides an excellent platform to discuss and analyze governance strengths and weaknesses. It allows the board to step back and examine its own effectiveness, which in turn results in effective governance improvements.
Time and planning, as well as the engagement of board members are essential to develop an effective board evaluation process. The first step is determining the scope of the evaluation. This could include the entire board, a specific committee, or a specific director. A good plan should also identify the method used to evaluate. Common methodologies include surveys, interviews or discussion groups that are facilitated. Once the scope and evaluation methodology are decided, it’s time to design and disseminating questionnaires.
Some boards opt to conduct the evaluation internally while others employ an outside consultant. A third party consultant can ensure a thorough and objective analysis, which is especially important when your board does not have the time or the resources to conduct the evaluation on their own.
It is important that board members examine themselves. However it is equally crucial that nonprofit boards pay attention to the whole. It is easy for nonprofit board members and their facilitators to become focused on evaluating individual actions and not pay attention to the board as a whole.
A successful self-assessment helps boards define expectations, uncover weaknesses in the composition of their boards and align knowledge of the board with the organization’s strategy, address concerns of investors regarding diversity and turnover and improve the effectiveness of board procedures and practices. In their proxy statements, public companies publish the outcomes of their board’s evaluations.