The role of the board of directors in an organisation is crucial in ensuring that the organisation achieves its goals and objectives. It is the responsibility of the board to provide guidance, direction, and oversight to the organisation, making sure that the company stays on course and remains competitive. However, even with the best of intentions and the most capable board members, it can be challenging to assess the effectiveness of the board in its role as an oversight body. To address this challenge, many organisations choose to conduct a Board Effectiveness Survey, but when is the right time for an organisation to take this step?
The Importance of Regular Assessment
One of the primary reasons to conduct a Board Effectiveness Survey is to provide regular assessment of the board’s performance. A survey provides an opportunity to gather feedback from board members and other stakeholders, including staff, shareholders, and customers, on the board’s performance. This feedback can be used to identify areas where the board is performing well and areas where improvement is needed. By conducting regular surveys, organisations can identify trends in the board’s performance and take action to address any issues that arise.
Changes Within the organisation
Another reason to conduct a Board Effectiveness Survey is when there have been changes within the organisation. These changes can include a change in leadership, changes in the organisation’s mission or strategy, changes in the regulatory environment, or changes in the competitive landscape. These changes can impact the board’s effectiveness, and a survey can help the board assess how well it is adapting to these changes and identify areas for improvement.
New Board Members
The addition of new board members can also be a trigger for conducting a Board Effectiveness Survey. New board members bring fresh perspectives and new ideas, but they also bring a learning curve. A survey can help new board members understand the expectations and responsibilities of the board, as well as provide an opportunity for the entire board to assess how well the new members are contributing to the board’s effectiveness.
Lack of Effectiveness
Finally, if there is a lack of effectiveness in the board’s performance, it may be time to conduct a Board Effectiveness Survey. The survey can provide valuable information on what is causing the lack of effectiveness and help the board identify steps it can take to improve its performance. For example, if board members are not contributing effectively to meetings or discussions, a survey may reveal that they lack the necessary information or training to do so.
The decision to conduct a Board Effectiveness Survey is not one that should be taken lightly. However, when the right time arrives, it can provide valuable insights into the board’s performance and help the board identify areas for improvement. By regularly assessing the board’s effectiveness, organisations can ensure that their board is performing at its best, providing the necessary oversight and guidance to help the organisation achieve its goals and objectives. Talk to us today about how Board Surveys can help with your next board review.