ABSTRACT
The underlying premise of much of the prescriptive literature and the majority of the research reported in this book is that better performing boards will result in better organizational outcomes. The notion that there is a positive relationship between board and organizational performance has remained virtually unchallenged yet there is very little supporting evidence in the research literature. The concept of board performance naturally leads to a discussion of how board performance is measured, the criteria applied and who conducts the evaluation. Allied to the notion of board performance are questions of how to evaluate the performance of individual board members and chief executive officers (CEOs) and whether individual performance is a precursor to overall board performance.
This chapter explores these issues and questions and is structured in five parts. First, the empirical evidence on board performance evaluation is presented along with examples from nonprofit and sport industry guidelines. Second, the empirical evidence on the correlates of board performance is reviewed. Third, is a brief discussion on organizational performance and a review of the debate surrounding the relationship between board and organizational performance. Fourth, guidelines for conducting individual board member performance evaluations are reviewed along with a discussion of the research on individual and board performance. Finally, the chapter reviews the recommended guidelines for conducting CEO performance evaluations.
