Kezia Farnham

Senior Manager

Board evaluation template

Board evaluations are at a turning point. Many boards have an evaluation process, yet only 7% of boards indicate the process results in specific action plans. This only underscores the value of developing board evaluation templates that give the process the integrity and due diligence it requires — and a more tangible connection to improved board performance.

The process of board evaluations or self-assessments should be more than a requirement or a standard part of the governance framework. Boards must look beyond the compliance component to discover how evaluations can drive board performance and engagement. Here, we’ll explain how to create powerful board evaluations, including:

• A sample board evaluation template
• A template for self-evaluations
• How to do a board evaluation
• Tools and processes for board evaluations
• How to create your own template

Board evaluation template

A board evaluation template is a list of questions that should prompt board directors to reflect on the board’s performance. For quantitative feedback, you can leave them open-ended or include them in a survey format with a rating scale (e.g., 1-5).

Use the following questions or tailor them to meet your needs:

1. Does the board clearly understand the organization’s mission, vision and goals?
2. How effective is the board in providing strategic oversight?
3. Does the board focus its time and efforts on the organization’s most critical issues?
4. How well does the board monitor and manage the organization’s financial performance?
5. Does the board have an appropriate balance of skills, expertise and diversity to meet the organization’s needs?
6. How effectively does the board manage risk and ensure compliance?
7. Are board meetings well-organized?
8. Do meetings encourage open and constructive discussion?
9. Does the board seek opportunities for improvement?
10. Do board members leverage their own networks to advance the organization’s goals?
11. How well do board members work together as a team?
12. Is the board chair effective at facilitating board meetings?
13. How well does the board chair lead the board and the CEO?
14. Does the board chair collaborate with the CEO?
15. Is the board proactive about trends and challenges that could impact the organization?
16. How effectively does the board engage with the organization’s stakeholders?
17. How well does the board evaluate and adjust its structure to meet the organization's evolving needs?

Board self-evaluation template

While a board evaluation template focuses on the board as a whole, a self-evaluation template gauges board members’ perceptions of their own effectiveness. This feedback can provide each member with tailored guidance and support.

1. How well do you understand the organization’s mission, vision and strategic priorities?
2. Do you actively participate in board meetings and discussions?
3. Do you attend board meetings prepared, reviewing the agenda and materials in advance?
4. Do you meaningfully contribute to board decision-making?
5. Do you support the organization’s leadership when needed?
6. Are you comfortable asking questions during board discussions?
7. Do you bring unique expertise and skills to your role as a board member?
8. How effectively do you fulfill your time commitments and responsibilities?
9. Do you actively participate in at least one committee?
10. Do you try to stay informed about the organization’s activities and developments?
11. How do you represent the organization to external stakeholders?
12. Do you take steps to educate yourself on best practices for board governance?
13. How comfortable do you feel expressing opinions during board meetings?
14. Do you have a productive relationship with the CEO?
15. How effectively do you communicate with other board members and the board chair?
16. What are two areas where you could improve?
17. Are there specific skills you would like to develop?
18. What could the board chair do to help you feel more engaged?
19. What are your top priorities as a board member?
20. How would you like to evolve your role within the board?

How to do a board evaluation

The setup of the board evaluation process is just as important as reviewing the results. This includes:

1. Defining the purpose: Boards should decide on what issues they want to evaluate and what they hope to achieve through the evaluation. The board may wish to explore the board’s structure, processes or both. The board should decide whether to look for quantitative or qualitative results. Answers to these questions will help point boards in the right direction as to which tools to use and how to proceed with the board evaluation template.
2. Selecting an evaluation method: Boards must decide whether to pursue an entire board self-assessment, individual director assessment or both. This decision should be tied to the board’s needs; individual assessments may yield more in-depth feedback on a specific board role or responsibility, while assessing the entire board offers a more comprehensive picture of board management.
3. Developing the evaluation criteria: Boards must also determine how to measure their effectiveness. Some boards find it helpful to review copies of meeting minutes for the most recent year to identify reoccurring challenges. Board members’ understanding of their responsibilities, contribution to corporate governance and board dynamics can each be powerful areas to evaluate.
4. Preparing evaluation tools: With criteria in mind, boards can select and prepare evaluation tools, including the template. This can often be done through the board portal, though some boards may opt for other online survey tools or paper-based questionnaires (Read more on tools and processes below).
5. Conducting the evaluation: Carry out the evaluation using the tools you choose. Create a confidential and supportive environment so all board members feel comfortable sharing positive and constructive feedback.
6. Analyzing the results: Compile the data from the evaluations, looking for patterns in the boards’ reported strengths and areas of improvement.
7. Developing an action plan: Strong board evaluations culminate in an action plan outlining how the board can improve on the weaknesses it identified during the assessment. This might include offering board training, refining meeting structures or clarifying strategic priorities.

Leveraging the right board evaluation tools and processes

There are three ways to conduct board self-assessments: surveys, interviews and group assessments. Seasoned boards often prefer to use some combination of those options for the best results.

• Surveys: Many boards prefer surveys because they’re easy and convenient and can be completed anonymously. Surveys or questionnaires will yield quantitative results.
• Interviews: Some boards prefer the interview process because it allows board members to be intrinsically involved in it. Interviews produce qualitative results and provide an opportunity to delve more deeply into the issues, which provides greater insight and more detailed information. Typically, the board gets survey questions ahead of time so they can review them. An interviewer, often a third party, uses the questions as a base for obtaining and expanding on the board directors’ answers.
• Group assessments: Facilitated group board assessments usually work best when a third-party administrator facilitates them. This method also produces qualitative results. This process only works well when the group already shares a high level of trust. Group processes can also be valuable as a team-building exercise.

In all cases, leveraging an impartial third party benefits board self-assessment exercises. Third-party facilitators bring more expertise and assessment skills. Board members often feel they can be more candid with third-party facilitators present and appreciate the objectivity they bring to the process.

How to handle committee assessments

The New York Stock Exchange now requires boards to assess the main board committees annually. Boards have the liberty of doing this assessment as part of the board self-assessment or making it a separate process.

Boards must also decide whether committee assessments include only committee members or the whole board. As the board receives committee reports, they may have a different perspective than those who serve directly on the committees.

Creating a board evaluation template

Boards that have done self-assessments in the past may find it helpful to use the past assessment tool as a starting point. Use the template to review past questions and add newer, more relevant questions according to current board challenges.

However, if your previous assessment was ineffective or you’re conducting an evaluation for the first time, creating a compelling board evaluation template is essential. Here are a few tasks to consider as you do:

1. Remember your objectives: Think back to what you hope to learn through the evaluation. This can help determine the format of the questions. Open-ended questions can dig deeper into sensitive topics — like relationships with board members. Whereas rating scales are often sufficient for more procedural questions — like those related to board meetings or decision-making.
2. Draft specific questions or statements: For each assessment area, create specific questions or statements that board members can respond to. Use rating scales (e.g., 1 to 5) and open-ended questions.
3. Reference examples: Boards new to self-assessments may find any number of examples by doing a quick search online. These questions should serve as a base for developing a customized template. The questions may focus on a few important areas. Overall, the complete set of questions should be well-rounded.
4. Leverage technology: Modern board portals have built-in board evaluation templates and tools, making it easier to consistently and securely assess board activities. These tools offer easy access to the evaluation, with automatic data analysis and report generation to make evaluations more actionable.
5. Review and refine the template: Think of the template as a living document. You can revise questions to examine the board’s most urgent challenges and opportunities. Gathering feedback from a small group of board members can help ensure the template is explicit and covers the most critical areas.

Elevate evaluations with Diligent Boards

Trust and anonymity are two of the most important components of the board self-assessment process. Modern evaluation solutions provide a beneficial framework that protects the process's integrity and efficacy.

Tools like Diligent Boards, part of the Diligent One Platform, are convenient, efficient, cost-effective alternatives to cumbersome spreadsheets and overused templates. Boards that use the board evaluation templates within Diligent Boards can expect candid, objective results without the added cost of hiring a third-party administrator.

With Diligent Boards, you can:

• Leverage best practice evaluation templates
• Keep all questionnaires secure
• Set up various types of questions
• Easily collect and analyze evaluation data
• Monitor submissions
• Automatically report on evaluation results
• Sign all materials digitally and export them with ease

Discover Diligent Boards today and take the first step toward streamlined board evaluations.