MAXIMISING VALUE FROM DIRECTOR EVALUATIONS
To get the most out of your Director Evaluations the board should do the following.
Use evaluations as a development tool
Director Evaluations should be used as a basis for planning professional development. Individual directors and the board as a whole should use their evaluation reports to plan training, coaching and other development for the upcoming year.
Link to board succession planning
The board should ensure that there are clear links between Director Evaluation and succession planning. The board can ask, “What are the gaps between our current skill set and the skills we need on the board to achieve more sustained organisational growth?” This can lead to identifying critical gaps that the board can fill next time there is a vacancy.
Link the process with strategic initiatives
The board should ensure that their Director Evaluations link to the strategic initiatives. For example if the organisation has a strategy of acquisitions then a careful review of the board expertise in this area should be undertaken.
Conclusion
There is a growing awareness of the need for director evaluation and the process has significant benefits for the board, management and the organisation as a whole. These benefits can be maximised if the chairperson carefully manages the process and it leads to building board skills in critical strategic areas.
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