The top ten tips include considerations before you start your board evaluation, how to feedback results to the board, and your action plan. Without a doubt it is best practice to implement a regular evaluation and appraisal of board performance. According to the IoD’s Code of Practice, systematic review of the performance of individual directors (including the chairman) and of the board as a whole helps address weaknesses, increases skill levels, and demonstrates a commitment to accountability. But the way that evaluation or appraisal is done is what really gets results.

1. Top ten tips
The top ten tips for getting the
most out of your board evaluation
or appraisal
iod.org.nz

2. Board evaluation
Without a doubt it is best practice to
implement a regular evaluation and appraisal
of board performance. According to the
IoD’s Code of Practice systematic review of
the performance of individual directors
(including the chairman) and of the board as
a whole helps address
weaknesses, increases skill levels and
demonstrates a commitment to
accountability.
But the way that evaluation or appraisal is
done is what really gets results.

3. Before you start
1.
Be clear about the objective. The right attitudes are set
when the board accepts that the aim of an evaluation is
to learn how to become better at what they do. This
spirit of improvement makes it much easier to discuss
what does and does not currently work.
2.
The chair’s leadership is critical. Before the evaluation
starts, the chair should make it clear that open and
honest feedback is both valuable and needed. The best
way to do that is by the chair volunteering to have his
or her own performance evaluated and discussed. The
other directors will then most likely follow that example.
3.
Allow enough time. Whether having a one-on-one
interview or completing an online
questionnaire, directors shouldn’t be surprised if they
have to take their time and think carefully. Evaluations
are important ways of gauging the performance of
those at the head of the organisation. They should not
be rushed.

4. Before you start
4.
Go right through the process. When completing a
questionnaire, all evaluation questions should be
answered. A good questionnaire is designed to look at
the board from different perspectives and stimulate
thinking about what could be improved. An individual
question may not be as important as its part in the
thinking process
5.
Comment, comment and comment
again….constructively. The results of the thinking
process should be captured in comments, which are
often the ‘gold’ of evaluations. A poor rating with
suggestions for improvement is constructive. On the
other hand, a destructive comment will not improve
performance.

5. BetterBoards
BetterBoards is the Institute of
Directors online evaluation tool that
helps boards identify their strengths
and weaknesses, assess their
performance (as individuals and as
a whole), and determine
opportunities to become better at
what they do.

6. Reports – feedback to the
board and your action plan
6.
Be careful with individual feedback. Individual
director evaluation reports are best handled through a
one-on-one discussion, usually with the chair. It is not
advisable to distribute or table individual director reports
at the board meeting.
7.
Allow time for discussion of the results. The board
should set aside time to discuss the evaluation results
fully and may need more than one session. This should
be planned for as a vitally important agenda
item, perhaps with a separate session of its own.
8.
Discuss team issues openly. Team issues include the
chair’s handling of meetings and other matters affecting
team performance, such as the adequacy of board skills
and whether the board spends time on the right things.
Every director should have a copy of the whole of board
report and come prepared for an open discussion.

7. Reports – feedback to the
board and your action plan
9.
Use the 80/20 rule when action planning. A thoroughly
engaged board may well provide a great deal of
comment and suggestions for improvement.
However, there will be common themes and issues and
out of those a relatively few will have the most impact
when addressed. Boards should focus on action plans
around the few that will make the most difference.
10. Chart progress. After action plans are set, progress
needs to be measured. The board should allocate
responsibilities and include progress reports as part of
its forward agenda planning. After it is satisfied that
actions have been completed, a new evaluation should
be considered to provide an overall picture of progress
and any new areas for attention.

8. BetterBoards facilitation
services
Conducting a board evaluation with the IoD is a first
step in assessment but the real value lies in how
you use those findings. We can provide a facilitation
service for your board to discuss
strengths, challenges and your board’s future
direction.
An independent, external facilitator creates a neutral
environment to discuss issues and strengths and
move towards the best way forward. It brings fresh
perspectives and a best practice context. We will
work closely with you to agree the agenda in
advance and tailor the facilitation to your outcomes.
Half or full day sessions are available.