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Board Evaluation
Services in India
www.excellenceenablers.com
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
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
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
• Board as a whole
• Committees of the
Board
• Chairperson of the
Board
Who is to be
evaluated?
• All Directors
www.excellenceenablers.com
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
Establishing
objective and
scope of
evaluation
Selecting
evaluation
methodology
Sensitising the
Board
Selecting
parameters
on which the Board
has to be evaluated
Setting up
evaluation team
(internal/external)
Implementing
the process
Following up to
recommendation
PROCESS OF EVALUATION
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
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
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
Contact us for
Board Evaluation Services
www.excellenceenablers.com

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Excellence Enablers Pvt. Ltd || Board Evaluation Services in India

  • 1. Board Evaluation Services in India www.excellenceenablers.com
  • 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
  • 7. Establishing objective and scope of evaluation Selecting evaluation methodology Sensitising the Board Selecting parameters on which the Board has to be evaluated Setting up evaluation team (internal/external) Implementing the process Following up to recommendation PROCESS OF EVALUATION
  • 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
  • 11. Contact us for Board Evaluation Services www.excellenceenablers.com