Evaluation should be based on the board’s own prior agreements about its operating practices and values (Step 2). This is the same principle the board applies to evaluating its chief executive. While desired performance standards should be agreed before
any assessment, many boards that initiate a review before these have been set find it satisfactory in the interim to rely on best practice standards.
While generic tools can be used to set initial benchmarks, directors should be aware there may be many elements of effective governance relating to their own board which they have to discuss and agree to. Ultimately, a board should have a clear job description and agreement on performance standards. It can then review its progress regularly at least annually and identify further opportunities for the board and individual members to improve their governance performance.
Included in the Governance Process policies in the online sample board charter are a board and board member performance assessment and professional development policy. This requires the board to establish and document its annual cost of governance.