Many non-profit organizations incorporate regular evaluation of the board of directors as a commitment to governance best practices.
Board evaluations are an essential process used to appraise the valuable contributions by the board of directors to the organization’s success. By assessing the operations of a board, it is provided it with a job performance evaluation. Assessments can focus on the work of the board, the contributions of the individual directors, or the board’s processes.
Similar to job performance evaluations used to assess the performance of the staff of an organization, evaluations of the work of the board consider both the means and the outcomes of its work. They are a review of the results of the board’s set of goals and the processes used to reach them.
Benefits of Board Evaluation
Board evaluations lead to motivation of the board. Both the process and the results of the evaluation recognize the board’s achievements. Regular evaluation of the board can also reinforce the importance of the board’s role within the organization. Many boards can encounter trying periods and can be led off the path to their goals. Regular evaluation keeps the board on track.
Additionally, board performance evaluations can highlight opportunities for improvement within the board’s processes and assist with establishing new goals. If a board is unaware of some areas of concern, it cannot have the opportunity to address them. Therefore, conducting these evaluations on a regular basis will foster a forward-momentum in the board’s work. Areas identified for development can also assist the nominating committee with its recruitment strategy.
These assessments can also reinforce to the organization the board’s accountability to its vision, commitment to the stakeholders, and responsibility for its resources.
What to Consider When Conducting Board Performance Reviews
Evaluating the work of the board can be done by an external facilitator or by each director using a standard questionnaire. In addition to illustrating areas in which the board excels and suggesting plans for improvement, specific elements that can be assessed include:
- the board’s mission, goals, and bylaws;
- the board members’ understanding of their roles and duties;
- the quality of job descriptions and the members’ commitment to the board;
- the board’s use of its committees and the quality of the committees’ terms of reference;
- board members’ understanding of their fiduciary duties;
- the diversity of the board’s composition and the board’s ability to accurately represent its stakeholders;
- the effectiveness of the ongoing recruitment process;
- the quality of the relationships between board members, as well as between the board and the organization;
- the quality of the communication between the board and the organization;
- the board's policies;
- the efficiency of the board meetings, decision-making processes, and board member participation;
- the quality of the board’s written work plan;
- the board’s ability to address conflict effectively and openly; and
- the board’s use of resources.
The board should have the results of the assessments summarized and distributed to each member. A portion of meeting time can be dedicated towards any discussions of the evaluation. The evaluations, when done regularly throughout the board’s term, should reveal consistent progress of the board’s work towards its established goals.
