Several boards carry out an annual self-evaluation, or an online quantitative evaluation, every three years based on the need to express and show good and ethical board behaviour. However, this is not the way forward if you ask Richard Leblanc, researcher at York University in the journal "The Corporate Board". He expresses that these simplified methods give an imperfect picture of the Board's work and efforts. Just as no one wants to assess a company simply on the basis of their accounts, one should not assess a Board of Directors based only on a quantified and outdated approach. If this method continues, Board evaluation can end up being a ritual tribal dance that adds no particular value to the company.
Board evaluations must not function as a tick in the compliance form. When basing your evaluation data from members' individual and biased understanding of what good board work is, you are taking the easy way out. One can quickly fall into a trap where the results become bland and the subsequent dialogue ends in a round of self-praise and self-glorification.
At Friisberg & Partners International, we specialize in Board Assessments. We go in-depth with a mix of qualitative and quantitative methods in the form of both online surveys, physical interviews and assessments. The data is used to uncover elements such as the Board's experience, their ability to collaborate & challenge each other and the management, collective knowledge and their professional competences. Bases on this data, the company's activities and the associated risks are analyzed along with the Board's work.
As an extra element in creating a truthful and in-depth evaluation, Friisberg & Partners Denmark recommends that the Management assesses the Board in addition to the Board's own self-assessment. Based on the full evaluation and the subsequent reporting, the Board has the opportunity to uncover the potential to become a better strategic player that matches and supports the Executive Board.
Overall, it is absolutely central to the utilization of the potential in an evaluation that the focus is not only on documenting the results achieved, but is seen as a resource for developing the Board; both in relation to current changes or future routines, structural conditions & long term knowledge building.
At Friisberg & Partners International, there is broad agreement that there is a correlation between external Board assessments and improved management quality. Board evaluations contribute to identifying strengths and weaknesses in the Board's functioning, which makes it possible to improve decision-making processes and strategic management. Furthermore, the evaluations contribute to an objective assessment of the Board's composition, working methods and efficiency. It promotes open dialogue and reflection on the Board's performance, which contributes to higher professional accountability.
As an additions service offering, Friisberg & Partners includes a targeted development and action plan as a part of our final report. This can lead to higher levels of engagement and performance.