While most businesses have established appraisal practices for their management teams, it is equally important to evaluate the board’s performance and how the members operate in the boardroom. When was the last time your board experienced an extensive appraisal via an independent board review?
At fds, we know all too well the importance of board governance in business. Having operated in the boardroom space for decades, fds is more than equipped to help businesses maximise their full potential by helping them create an elevated board.
What Does a Board Review Entail?
fds will create an environment of discretion and confidentiality, allowing board members to freely express their views on themselves and each other in a constructive way. The results of these exercises, including watching the board ‘in action’, will provide the company with a detailed ‘to-do list’ to rectify and improve performance. We will present this both confidentially, if requested, to the chair and the board as a whole.
Board reviews should include, but are not limited to, the following:
Detailed Examination and Analysis
Board reviews are a result of thorough observation of board meetings, with regard to the success of the discussions that take place in the boardroom, as well as the interactions between board members. This detailed and proactive approach allows for a full assessment of a board’s overall effectiveness.
The key six areas we would explore include:
- Getting started – review objectives and agree on the scope and approach with the Chairman and CEO as applicable.
- Information review – we will review recent board and committee papers to understand what’s been preoccupying the board and where it spends its time. This will also help assess the quality of information that the board and committees receive.
- Gaining insight – we will conduct confidential one-to-one meetings, or issue questionnaires (whichever is preferred) with key people, including all board members. Discussions are engaging and aim to draw key concerns within the board.
- Meeting observation – whilst not essential, we’ve found that observing board and committee meetings provides a particularly good understanding of board dynamics and culture, allowing us to deliver better insights.
- Analysis – once we’ve undertaken our fieldwork, we’ll analyse what we have found and follow up on any matters as relevant.
Providing Valuable Feedback and Creating an Action Plan
Once the board has been thoroughly examined, a comprehensive report will be created that pinpoints important judgments and actionable suggestions. The objective is for the board to function at peak efficiency to maximise growth and put the company on the path to success.
Continuous Improvement
At fds, we believe that board reviews should be considered an ongoing process in order for the company to prevent stagnation and encourage continuous growth. Regular assessments mean that the company will stay on top of its game in terms of any shifting circumstances and changes in the industry in which it operates.
Tailored Solutions
Board reviews should be bespoke to the board being assessed. Every board has its own distinctive challenges, expectations, and requirements, which should be considered when conducting a board review to deliver optimal results.
How fds Can Help
fds understands the common mistakes in board governance and can assist you in preventing these complications before they cause a detriment to your company and your boardroom. With decades of experience in the boardroom field, we are well-equipped to help develop an elevated board with enhanced performance. If you are interested in learning more, contact us for a confidential conversation.
