Excellence Enablers provides board evaluation services in India. It helps to build better boards in India.
For more details, you can contact us: https://excellenceenablers.com /services/
2. Topic to be
covered
• Introduction
• Objective of Board Evaluation
• Who is to evaluated?
• Who is to evaluate?
• Process of Evaluation
• Benefit of Board Evalation
• What does Board Evaluation
required to succeed
• Problems confronting Evaluation in
India
www.excellenceenablers.com
3. Introduction
Board evaluation is the process to assess the functioning
of the Boards and Committees towards achieving the
desired objectives , remaining within the ambit of the
regulations, and working effectively to meet the business
strategy. Board Evaluation is mandated in India through
regulation.
www.excellenceenablers.com
4. The objective of Board Evaluation
• To evaluate the boards and its committees as well as individuals
directors.
• To ascertain whether the composition of the board is the best that
it can be.
• It is not sufficient if the people being considered are only " good
enough ".
www.excellenceenablers.com
5. • Board as a whole
• Committees of the
Board
• Chairperson of the
Board
Who is to be
evaluated?
• All Directors
www.excellenceenablers.com
6. Who is to evaluate?
• NRC has to specify the manner in which the evaluation exercise will be carried
out either by the Board, by the NRC, or by an independent external agency
and review its implementation and compliance.
• Board as a whole to be evaluated by the all Directors.
• Each Committee of the Board to be evaluated by its chair members.
• Chairperson of the Board to be evaluated by the Directors, excluding the
Chairperson.
• Each Director to be evaluated by all the Directors, excluding himself/herself.
www.excellenceenablers.com
8. Benefits of Board Evaluation
• An effective evaluation process helps to identify the strengths and
weaknesses of a Board.
• It points to the necessary corrective steps.
• Improved Board performance reinforce the efforts of
management.
• Evaluation helps to identify gaps that need to be filled in the Board
functioning.
www.excellenceenablers.com
9. What does Board Evaluation
required to succeed
• It must be an honest exercise, reflecting candour and conviction.
• The entire Board should own the process.
• It must be seen as a value-adding exercise and not a tick-box
exercise.
• There will be no gains in effective follow-up does not take place.
www.excellenceenablers.com
10. Problems confronting Evaluation in India
• Prescriptive legal arrangement has internal inconsistency.
• Resistance from Directors "I was invited. Why I be evaluated?"
• Cultural dimension - An average director in India is adverse to
criticism.
• Unstated expectations from Directors - Evaluation can ordinarily be
carried out with reference to seated expectations.
• Problems in Board functioning - Expressing a frank opinion can
cause a problem instead of the affairs of the comapny.
www.excellenceenablers.com
