5 Reasons to Conduct a Board Effectiveness Review
What comes to mind when you hear the word “review”? If you think of criticism, judgement, or inspection, you might be approaching it the wrong way. A well-conducted Board effectiveness review provides numerous benefits for both your Board and your organisation, and should be seen as a constructive process instead of a fault-finding one.
Let’s look at five reasons your Board should consider conducting a Board effectiveness review.
1. Leveraging the strengths on your Board
Boards are composed of experts in their respective fields. However, in some cases, the skillsets and experience of individual Board members may not be fully recognised and utilised. A strengths-based Board effectiveness review allows you to map the skills and expertise on your Board and ensure they’re being maximised. When Board members engage in tasks that match their experience, it adds to the Board’s overall effectiveness and contributes to broader organisational success.
2. Aspiring towards best practice in governance
Regular Board reviews are a core requirement in the Charity Governance Code, and as a Board effectiveness review is an indication to your stakeholders – including funders, staff, volunteers and beneficiaries, as well as the public – that your Board is dedicated to best practice, transparency and accountability.
3. Adapting to a period of change
Nonprofits are operating in an evolving political and social landscape. This context demands Boards to be proactive and adaptable; capable of addressing challenges as they arise and identifying potential opportunities.
A Board effectiveness review helps to strengthen Board engagement and collaboration, to ensure that its committees have the appropriate composition and established duties, and that processes and structures are consolidated. This facilitates effective decision-making, leadership, and communication when faced with change.
4. Identifying and addressing gaps
So maybe it isn’t all good, and we’d be lying if we said a Board effectiveness review doesn’t consider areas for improvement. By taking stock of your Board’s its structure, dynamics, processes, people, and performance, you have an opportunity to reflect on what perhaps may not be working as well as it could.
What is important here is to focus on what happens next. After hearing constructive feedback from all your Board members, you can create an actionable roadmap to address any gaps and overcome challenges.
5. Returning to your purpose
Let’s return to the core purpose of serving on a Board and take a moment to reflect on the reasons and motivation behind this commitment. We are reminded of the passion, interest, skills, and desire to give back. A Board effectiveness review serves to remind all Board members of these fundamentals, generating a renewed sense of purpose, clarity, and confidence moving into the future.
Interested in learning more?
Engaging an independent and external third-party perspective in a Board review can offer a valuable objective insight, removing any bias and allowing Board members to be honest and transparent with their feedback. We can work with you to tailor a Board evaluation that reflects the nuances and complexities of your organisation, out of which will emerge constructive recommendations that resonate with your Board members’ experiences.
If you are interested in learning more about what a Board review would look like for your Board, please contact our Director of Advisory Services, Sheena Horgan at sheena.horgan@2into3.com.
