Independent Board Performance Reviews ...
The Critical Questions for Governing Bodies to Answer are twofold:
1. How “good” is your Governing Body on the Performance Spectrum?
2. Has your Governing Body demonstrably improved its Performance each year?
GRC Consulting provides a world-class market-leading solution for Governing Bodies that are Performance Driven and Oriented – Independent Board Performance Reviews.
Our Service is the market-leading option for those Boards and Directors aspiring to be the best they can be and to be assessed accordingly to drive the proper understanding, positional assessment, and Performance Improvements.
This is not a Compliance Governance “tick-box exercise” – it is focused on Performance and improving that of your Governing Body and its Directors.
Primary Purpose …
The primary purpose of regular Board Performance Reviews is to help the Governing Body continuously improve its Performance and that of its organisation.
Best Practice Requirement …
Board Performance Reviews, under many global and or leading corporate governance frameworks, are required by market best practices and or Regulators and similar to be conducted:
- Continuously, therefore annually and internally, and
- Independently led by an appropriately independent and professionally qualified Board Reviewer every third year.
We provide the best world-class Performance Driven market-leading solution for Governing Bodies seeking Independent Board Performance Reviews.
Governing Body Approach …
The Governing Body should ensure that to undertake an Independent Board Performance Review, it understands and clearly delineates the distinctions between the two components comprising a full-scope Board Performance Review. Namely:
- Onsite Component.
- Information Gathering Component.
The Governing Body should, in properly undertaking a full scope and Independent Board Performance Review, engage in both components within the full scope of the Review.
The Governing Body may decide to adopt or to contract with Service Providers who do use software or other tools as part of an “external and independently provided Board Performance Review service that results in defined client deliverables and reporting”, which may or may not include onsite visits and or interviews with relevant persons, subject to the scope of the Board’s engagement. However, the Board should not subscribe to and or engage with any Service Providers with software or other tools solely provided for the Board’s use in what would constitute an “internal review”.
It is recognised that electronic or other information-gathering methodologies and or tools are not only currently globally preferred but provide valuable, practical and cost-effective, and efficient methods within the Information Gathering Component.
However, to undertake a full scope and Independent Board Performance Review, the Governing Body, must also engage a Board Reviewer service provider to address the Onsite Component.
Definition …
The terminology in the context of an “Independently” performed “Board Performance Reviews” in its broader sense refers to a “full scope” “Board Performance Review”. It is generally taken at a best practice level to incorporate the following:
1. Onsite component, which may be performed by Board Reviewers, comprising independent, professionally qualified personnel conducting this component of the review exercise. Typically, inclusive of those Board Reviewer processes to “see first-hand”, corroborate, meet and discuss in person to evaluate, assess and conclude, and other similar activities, facilitated by the Board Reviewer being onsite, in-person, and interacting on a personal level with members of the Governing Body and related persons.
2. Information Gathering component, which may be undertaken by:
- The above independent, professionally qualified personnel or Board Reviewers.
- It may be performed by the Board using other service providers with electronic or other information-gathering methodologies and or tools.
- It may be completed by various other means, the Governing Body, or the organisation itself.
Board Performance Reviews, whilst currently not being explicitly defined, to allow greater market freedom and choice among a range of other factors, are, however, expressly noted as a “de minimus” definition to exclude any “Board Performance Review” that has software or other tools supplied to the Governing Body and or organisation that are then used by the Governing Body and or organisation as part of its internal review.
Key Governing Body Decision …
At the point of addressing the Governing Body’s Board Performance Review, the critical question for the Governing Body becomes, “well, what now, and how to progress to ensure the best benefit to the Governing Body and organisation“?
As all Governing Bodies are different, and to make a properly considered decision, one has to consider the Governing Bodies within an appropriate framework and determine within a myriad of factors, such as:
- what is relevant for that Governing Body and its Directors;
- where is it placed in positioning for and successfully delivering on adding long-term sustainable value;
- current understanding and information available;
- the organisation, the Governing Body and their Performance and its place within its business environment, etc.
Simply put:
How “good” is your Governing Body on the Performance Spectrum? and
Can your Governing Body demonstrate its Performance Improvements each year?
and, as a direct consequence, positioning the Governing Body appropriately for a Board Performance Review that adds the most value.
So, a vital component of the critical question for the Governing Body is to clearly understand the Governing Body’s positioning between approaches that are:
- Performance Oriented, or
- Conformance Oriented.
Which we reflect graphically as follows:
Further References and Reading ...
To understand these approaches in more detail for your Governing Body and its related decision for its Independent Board Performance Review approach, please read further, follow these links and or utilise the “Services” Menu as follows:
Performance Oriented – Board Performance Reviews – To read further, please click the “Read More” button.
Conformance Oriented – Board Performance Reviews – To read further, please click the “Read More” button.
Decision Support – Performance vs Conformance Assessments – To read further, please click the “Read More” button.
For your understanding of our GRC Consulting approach to your Independent Board Performance Reviews, please read our:
Principles – Independent Board Performance Reviews – To read further, please click the “Read More” button.
As Background reading, you may wish to read our published LinkedIn Articles on:
Firstly, the New Direction for Board Performance Reviews:
“Board Performance Reviews” => In | “Board Evaluations” => Out
Understanding the new Direction.
To read this LinkedIn Article on our website, please click the “Read More” button.
Secondly, the Factors to Consider:
Board Performance Reviews
Factors to Consider – as a Board or Service Provider.
To read this LinkedIn Article on our website, please click the “Read More” button.