“The board should undertake a formal and
rigorous annual evaluation of its own performance and that
of its committees and individual directors.”
The Combined Code on Corporate Governance
The Higgs recommendations are designed to increase the effectiveness
of boards and their individual members. Compliance signals a concern
for probity, transparency, integrity and leadership, to investors,
staff and customers alike. Companies are now required to report
how this review has been conducted.
Yet a 2003 report found that half of all non-executive directors
had been appointed on the basis of personal acquaintance,
with only 4% undergoing a formal interview.
Wickland Westcott provides a thorough and objective performance
review, producing a developmental action plan for the board, the
chairman and each director. The report also benchmarks performance
confidentially against other organisations.
The criteria and process for evaluation are agreed with the chairman
and the board. Typical assessment criteria include:
 |
the role and leadership of the chairman
|
|
contribution to strategic development |
|
bringing broader perspective to discussion |
|
understanding of key business issues |
|
relations with fellow directors and management |
|
perspective of shareholder value |
|
ability to direct management clearly |
|
identification of risk |
Detailed individual assessments (discussed in confidence with the
individual director) are used to generate a report identifying strengths,
development needs, performance issues and knowledge or skills gaps
on the board.
Critically, Wickland Westcott provides a confidential, focused
and informed service, which supports individuals and is sensitive
to team and business circumstances.
With a Wickland Westcott performance review, you can have confidence
that your board is the best it can be. Can you afford not to?
Click here for Board
Performance Review case studies
|
