Regularly Review the Board's Peformance

The board should set standards for its own performance

A governance effectiveness review is designed to serve a number of key purposes:

• It offers directors the opportunity to hold a mirror to their own practices and processes, and to identify those matters that require attention.
• It facilitates greater openness about the importance of good governance.
• The process compels directors to examine their strategic responsibilities, their decision-making processes and stakeholder relationships.
• The process encourages directors to talk openly about their various views of the board’s performance.
• It closes the loop in the organisation’s performance measurement circle.
• The peer and self-assessment provides an otherwise hidden snapshot of shared opinions about the contributions made by individual directors.
• A benchmark is developed against which future board performance reviews can be set.
• The process results in the development of performance improvement targets, objectives and action plans that become the focus of much of the board’s internal attention for the coming year.
• It is an aid to succession planning.
• It identifies areas where their personal contribution could be enhanced.
• It is an expression of accountability to stakeholders.