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Board evaluation - Coggle Diagram
Board evaluation
There are five classic phases that a consultant (and a company secretary) will need to negotiate. These are as follows
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Phase 5: extension, recycle or termination
The entry phase is key to set the appropriate role expectations and tone. In this phase, some of the issues that a company secretary will need to navigate are: negotiating what exactly the chair wants from the board evaluation, coping with mixed motivation across the board room, for the process and dealing with potential concerns about confidentiality, exposure and loss of control
The FRC's 2018 Guidance on Board Effectiveness provides some useful direction on what to take into account when selecting an external evaluator. Some of their advice is that the chair needs to
Be clear what the board evaluation will offer - each provider will have a different method and experience with cost and approaches varying greatly across providers
Evaluate the skills, competencies and references of each individual involved in the evaluation against a specification agreed with the board
Be mindful of existing commercial relationships and other conflicts of interest and select an evaluator who is able to exercise independent judgement
Agree with the evaluator the objectives and scope of the evaluation, expected quality, value and longevity of service, and communicate this to the board
Peter Block suggests a skillful board consultant is one who takes on the role as an equal collaborator such that the three primary goals of consulting, either internally or externally to one's organisation are to
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Although individual director and board performance may already be addressed at specific times, such as when issues arise, during re-nomination or as part of coaching and mentoring, the process of board evaluation is increasingly recognised as a key set piece opprotunity to influence the functioning a board positively
Accountability for a successful board evaluation will ultimately lie with the chair as leader of the board, the responsibility for delivering the board evaluation in practice often lies with the company secretary
The role of internal board consultant is a key requirement of any modern governance professional wanting to deliver an effective board evaluation successfully