In today’s dynamic business environment, corporate governance plays a critical role in steering organisations towards success. The board of directors is at the heart of this governance structure, responsible for overseeing strategic decisions that impact the company’s trajectory. To ensure the effectiveness of these boards, regular performance reviews are essential. Many organisations turn to board evaluation consultants for their expertise in conducting thorough assessments, and in some cases, due to regulatory compliance for external perspectives.
But board evaluations should be more than a compliance exercise. They are a key component to having an effective board of directors, providing a structured mechanism for assessing the performance of individual directors, various committees and the board as a whole. Working with board evaluation consultants helps organisations to work through challenges and there are ways to enrich the process even further. In this article, we’ll cover the role of board evaluation consultants, questions to ask before engaging one, and how BoardOutlook can support and enhance the work they do with the board.
The role of board evaluation consultants
Board evaluation consultants bring a wealth of experience and objectivity to the evaluation process. They guide boards through the assessment, facilitating open and honest discussions that ideally lead to meaningful outcomes for both the board and the organisation. Typically, board evaluation consultants will employ a variety of tools, methodologies and best practices to ensure a comprehensive review that goes beyond simple compliance. By leveraging the expertise of board evaluation consultants, organisations can gain valuable insights into their governance practices and enhance board effectiveness.
Challenges to the evaluation process
Traditional board evaluation consultants will often utilise surveys, interviews and document reviews. While these methods can be effective, they can also be time-consuming and may not capture the depth of insight needed for a thorough evaluation. The emergence of purpose-built board evaluation software addresses these challenges, providing a more streamlined and data-rich approach to the assessment process.
Questions to ask before engaging board evaluation consultants
When looking to engage a board evaluation consultant, it’s recommended that you ask the following questions in order to determine if their expertise is right for your board and the unique challenges your organisation may be facing.
Which organisations and chairs does the consultant work with?
Both the quality and quantity of boards that a consultant has worked with can help you to assess their credentials. A good board evaluation consultant will have worked with reputable boards and chairs, both recently and over time. If they’ve worked with some boards more than once, that’s a good indicator that they’ve added value to those organisations and helped the development of the board over time.
How does the consultant ensure ownership by the board?
A high quality board evaluation consultant will have a range of strategies and techniques to ensure the board has ownership over the process and results. An effective consultant understands whilst they can provide support and advice, the board (and Chair) must own their performance and development and will have a plan to ensure this takes place.
What is the board evaluation consultant’s primary delivery mechanism?
Most board evaluation consultants will approach a review with some combination of online survey and face-to-face interview. Each of these approaches has pros and cons, which will vary depending on the experience and expertise of the individuals involved and the circumstances of the board. The consultant should be able to provide an overview of these trade-offs.
How much logistical support will be delivered by the consultant, and what is expected of the organisation?
In entering into a process it’s important that the board understand how much logistical support is required from the organisation, and how much will be the responsibility of the board evaluation consultant. For example, who is responsible for contacting participants and booking interviews? Who will follow up to remind individuals to complete any required diagnostics?
How will the consultant deliver a secure and confidential process?
Security and confidentiality are critical foundations for any successful board review process. Any effective process will capture some of the most confidential information that exists with an organisation. To protect the integrity of this data and the board, it is important to understand:
- Who specifically will have access to any information recorded or generated through this process? Are there any third parties used such as transcribers or data processors?
- If responses are confidential and anonymised, will anyone have access to this in an identifiable manner to compile the data? If so, how is confidentiality protected?
- Is all data with respect to the process encrypted at rest and transmitted using secure channels?
- Is any data with respect to the process stored offshore (including in SurveyMonkey, Dropbox, Gmail or similar cloud accounts?)
- If data needs to be compiled into local presentations or documents, are these devices and files encrypted and stored securely?
- What privacy policy protects data shared through the process? Do individual directors have the right to have their data deleted? If so, how does the process ensure longitudinal integrity?
- If anything is recorded on paper, how is this stored and processed whilst maintaining integrity and confidentiality?
Utilising software when working with board evaluation consultants
Even when working with a board evaluation consultant, software can be a valuable tool that can further enrich the process.
Confidentiality and security
Traditional board review processes introduce substantial confidentiality risks through data collection and compilation of results. BoardOutlook eliminates the risks of uncontrolled and encrypted digital and physical artefacts that increase the risk of inadvertent data breach. Using our platform gives your board the protection of end-to-end security and encryption, supported by annual audits and penetration tests.
Data at your fingertips
Traditional board performance can be a once a year event, or even a once-in-three-year event when it comes to working with a board evaluation consultant. BoardOutlook allows your board to move to a longitudinal process of ongoing performance improvement, which can enhance the work a board evaluation consultant will do with your board. Not only can you easily track change and improvement over time, you can also take advantage of benchmarking reports to see where your board sits relative to your peers.
Fast deployment and turnaround
BoardOutlook has no integrations, which allows rapid deployment (your organisation can be live within hours). Automated reminders, report generation and workflow management mean board review processes are completed within weeks, not months.
Getting the most out of your board evaluation process
High-performing boards start with high-performing individuals with strong self-awareness. The BoardOutlook platform allows boards to move from regulatory compliance to a true development exercise. When combined with a board evaluation consultant, boards are confident they’re getting the most out of their board evaluation process. Not only will the assessment be more insightful, the whole process can be more efficient, ensuring your board evaluation consultant focuses on your key priorities and biggest challenges to enhance the performance of your board.