Looking in the mirror: how effective is your board?

Strong boards recognise that effectiveness isn't something that can be assumed. It needs to be reviewed and refined over time. They regularly ask themselves difficult questions: Are we spending time on the right issues? Do we have the right skills around the table? Is challenge robust enough?

A board self-assessment creates the opportunity to answer these questions honestly.

More than just a governance exercise, a self-assessment enables boards and committees to step back from day-to-day demands and take a fresh look at how they operate. It can help uncover blind spots, improve board dynamics and identify actions to enhance performance.

How often should reviews take place?  

Boards and their committees should review their effectiveness against their terms of reference annually. These internal reviews should be complemented by independent, externally facilitated reviews, typically conducted every three years.

What should a board effectiveness review look like?  

The self-assessment is typically conducted through a questionnaire completed by board members, providing an opportunity to reflect on how the board and its committees are performing. Areas commonly covered include:

• The operation of board meetings, including challenge, scrutiny and the quality of debate  
• Adherence to the board’s terms of reference  
• Composition and competency  
• The quality of board inductions and training programmes  
• Board performance evaluation  
• The quality and timeliness of information  
• Succession planning  
• Strategy setting and monitoring  
• Diversity and inclusion  
• Board committees’ performance and escalation of key information  
• The effectiveness of the chair  

Further input can be sought through one-to-one meetings between board members and the chair to explore key themes from the review in more detail and discuss feedback on individual and collective performance.

To support an objective assessment, the chair may also meet with the senior independent director who can provide an independent perspective on the chair’s own effectiveness.

Turning insights into action

The value of a review lies not in the assessment itself, but in what happens afterwards.

The results should be collated and fed back anonymously to the board, with key themes and areas for development highlighted. Value-adding actions are then decided upon, with clear ownership and agreed timeframes assigned. The chair plays an important role in ensuring progress is monitored and that agreed improvements are actually implemented.

Without a clear action plan, even the most insightful review can fail to deliver a meaningful outcome.

How should sub-committees be reviewed?

Although separate committee self-assessment reviews are not a requirement, they are widely recognised as best practice.

Boards may choose to develop standalone assessments for individual committees or expand the scope of the board review to include a more detailed evaluation of committee effectiveness. The latter option may be more pragmatic where there is significant overlap between board and committee membership.

The outcomes of separate committee reviews should be shared with the main board, providing a complete and transparent picture of effectiveness.

High-performing boards never stop improving

Even the most experienced boards can develop blind spots. Strong boards regularly take a step back to assess whether they have the right focus, behaviours and capabilities to support the organisation's current and future needs.

When supported by clear action plans and complemented periodically by independent external review, self-assessments become a powerful tool for continuous improvement. Ultimately, they help boards remain effective, forward-looking and aligned to the organisation's purpose, ensuring they can support the delivery of strategic objectives and long-term success.