BOARD PERFORMANCE MANAGEMENT AND EVALUATION

BOARD PERFORMANCE MANAGEMENT AND EVALUATION

Boards play a major role in oversighting the performance of management and by extension of the corporation they represent. In the recent past, there has been a lot of interest that Board performance needs to be taken into account, and that the performance of each director as well as the performance of board committees and chairpersons of committees be taking into account. This call is supported by a number of corporate governance principles – accountability, and transparency for example. It is also being fueled by stakeholders’ interest to see the organizations turn in better results. What remains contentious is how it should be done, not why it is important to do it. The idea of board performance management and evaluation has been received with mixed feelings. Why has this been so? What are some of the KPIs that should be used in Board Performance Evaluation? How should the process be undertaken in order to preserve the collegiality that characterizes professionalism and diplomacy at the Board level? What fire backs are likely to be faced when introducing and institutionalizing board performance evaluation?