Has the Board Lost Touch???

The current issue of Management Today has a great cartoon depicting the remoteness of senior management. Having spent the weekend putting together a rough first-draft of a Board Performance Self-evaluation Questionnaire, I thought I would share the cartoon with you and the first section of the questionnaire as I think they go together rather well!

If the cartoon reflects the performance of your organization (which I am sure it won’t) then you would almost certainly be scoring very low in each of the questions.

Please have a look at the questions and the scoring mechanism and let me have your thoughts for improvement.

Please read the statements below and give your opinion as to the performance of your organisation based on the following scale:

1. Poor

2. Mediocre

3. Acceptable

4. Good

5. Best-practice

The Board...

1 works collectively in taking responsibility for the long-term success of the organisation

1.

2.

3.

4.

5.

2 delivers entrepreneurial leadership, identifying areas of opportunity, taking calculated

risks

1.

2.

3.

4.

5.

3 members each understand their statutory duties as directors

1.

2.

3.

4.

5.

4 members each act in the best interest of the organisation

1.

2.

3.

4.

5.

5 clearly defines its risk appetite

1.

2.

3.

4.

5.

6 effectively assesses and manages risk

1.

2.

3.

4.

5.

7 effectively sets the organisation’s strategic aims

1.

2.

3.

4.

5.

8 effectively sets the company’s values and standards

1.

2.

3.

4.

5.

9 ensures that the necessary financial resources are in place

1.

2.

3.

4.

5.

10 ensures that the necessary human resources are in place

1.

2.

3.

4.

5.

11 effectively and regularly reviews management performance

1.

2.

3.

4.

5.

12 ensures it fully understands its obligations to its shareholders and others

1.

2.

3.

4.

5.

13 ensures it fully meets its obligations to shareholders and others

1.

2.

3.

4.

5.

14 meets sufficiently regularly to discharge its duties

1.

2.

3.

4.

5.

15 has an appropriate and formal schedule of reserved matters

1.

2.

3.

4.

5.

16 operates with a clear division of responsibility between the running of the board and

the executive responsibility of running the organisation

1.

2.

3.

4.

5.

17 operates with a clear and documented division of responsibility between the Chairman and the Chief Executive

1.

2.

3.

4.

5.

18 ensures that concerns that cannot be resolved about the running of

the company or a proposed action are recorded in the board minutes

1.

2.

3.

4.

5.