Introduction
The previous blog outlined three characteristics to consider when choosing members for
governance boards in all sectors (not-for-profit, public sector, association, union, councils). These were;
- Background and Experience
- Competencies
- Diversity
4. Evaluation of Board Members
It is critical for board members to know when their contributions and competencies are no longer serving the needs of the board. They need to know what they are doing to ensure all governance practices are exemplary and what they are doing which is impeding the work of the board.
It is important for them to know when they are failing to act independently and objectively, or when their personal agenda is interfering with the well-being of the board.
5. Needs of the Board
One approach is to ensure there are enough members to guarantee a quorum for board meetings. Another approach is to review the mandate of the board and delineate the skills needed to ensure the board is able to make effective decisions. It requires the board to select members who are willing to plan strategically, foresee and deal with risks, and place the board in a position to deal with future opportunities and threats. This method is more likely to ensure the long term viability of the entity and ensure the board meets the regulatory standards.
6. Time Limits
Some board members are never great contributors because they are unable to grasp the concept of board governance and continue to focus on their own agendas. Other board members constantly upgrade their knowledge, are excellent team players and provide insightful contributions.
On the one hand, boards can use methods to ensure risks are continually assessed, all knowledge is reliability presented and evaluated, and their own performance is independently scrutinized. On the other hand, boards with little turnover can resort to groupthink, refuse to listen to opinions and information which does not agree their own, and fail to see the long-term consequences of their decisions.
In the case of each board the question is, “How long can members remain and maintain their sense of independence and objectivity?”
Final Comment
It can be argued that boards can not always be selective. The key is to remember that it is better to have a small effective board than a large ineffective board.
Watch for our new books The Productive Boardroom and Creating a Functional Board which will soon be available online.
