Board Evaluation Report Calvin Nyachoti Institute of Certified Public Secretaries of Kenya

“The board should exercise compelling and relentless leadership and should not underestimate the power of leading by example - evidenced by high levels of visibility and integrity, strong communications, and demanding expectations. Boardroom Behaviours A report prepared for Sir David Walker by the Institute of Chartered Secretaries and Administrators , UK

Contents Rationale for Evaluation Reporting results After the presentation

Why Evaluate? Gives individual members an opportunity to reflect on their individual and corporate responsibilities. Harmonises the board’s reason for being. Identifying different perceptions and opinions among board members. Pointing to issues that need board attention.

Why Evaluate cont.. Serves as a springboard for board improvements. Increasing the level of board teamwork. Providing an opportunity for providing mutual Board and Staff expectations. Demonstrating to staff and other stakeholders that accountability is a serious organizational issue in the Board.

Why Evaluate cont.. Providing credibility with funders and other external persons/organizations. An important effect on the overall, long-term business performance of the organization. To assess board effectiveness and the adequacy of the information flow to the board, on the basis of a developed criteria.

Why Evaluate cont... Monitoring processes - increasing correlation between effective boards and organizational performance. It informs formulation of future policy documents. Now a standard requirement for Public Institutions. Provides criteria for appointments and renewal of tenure. It is prudent business practice.

Reporting of Evaluation Results By far the most important element of the evaluation exercise. Arrange a special meeting/forum to present the evaluation report. Maintain objectivity while being open.

Reporting of Evaluation Results Reporting of results of evaluation should be done under an environment full of trust and respect for one another. Ensure confidentiality: that is, the results should not contain who said what against who. Reporting time should not be a time to condemn but a time to appreciate weak and strong areas. Present report sooner than later.

Useful Feedback When one director received some positive feedback on how his colleagues valued what he said, it encouraged him to participate more. A different Director was often seen doing personal work during board meetings. It was difficult to give him critical feedback but when he heard from his colleagues after an evaluation he changed and pledged to do better. JOH-KGN001-20071212-JvW-X1

After the Presentation After the results have been communicated the following should happen: Agreement should be reached on how to deal with areas evaluated as weak (through training, deeper involvement in the the company, co-option etc.) Drawing action plans with timelines. Strategies should be developed on how to sustain the momentum on areas strongly evaluated. Careful thought should be given on the suitability of the directors (weaknesses can signal the need to make changes in the body of directors etc.)

Conclusion However a board chooses to carry out evaluation, it is necessary to consider some factors namely: Who has the overall responsibility for the process (usually the Chairman) Who is going to have input into the process The structure and content of the evaluation How the results will be reported and to whom, and Most importantly, how the outcome will be acted upon by the board

Q & A