ABSTRACT

The momentum to evaluate boards has impacted across the three sectors of private, government and not-for-profit. Periodic evaluations of board performance are an indication of good corporate governance. Corporate boards are increasingly searching for external validation and insight into opportunities to improve through evaluations. Board performance evaluations are skewed towards qualitative data. Quantitative dimensions are usually limited to a check of compliance obligations. The skill of the evaluator to access, analyse and present qualitative data at board level is critical to success. Through a boards legal status, conventions, organisational positioning, composition and modus operandi, the exercise of board power is both inferential and implicit. Boards are responsible for overall company performance. Functions of boards include: setting company direction, making available resources, monitoring company performance, ensuring company compliance, ensuring risks are managed and communicating progress to a range of stakeholders.