Why should volunteer boards conduct board self-assessments?

In a nutshell, boards should conduct board self-assessments because it’s considered best practice. Whether it’s a public, private or nonprofit board, all board members are accountable to those they serve and it’s important for them to do the best job that they can during their board service. The nominating and governance committee is normally tasked with ensuring that boards complete their annual board self-assessments.

The purpose of board self-assessments is to be sure that boards are fulfilling their duties and responsibilities and that appropriate processes are in place to ensure that boards are giving due diligence to planning and oversight over the organisation. Essentially, no one directly oversees the board, so it’s vital that they take an annual objective look at themselves as individual directors and how they function as a group.

Preparing board directors for their duties

It would be difficult, if not impossible, to conduct an objective and adequate assessment of a board director’s progress if they weren’t aware of their expectations from the start. The board self-assessment process really has to begin the moment a new board director accepts a vacant board seat.

The best-case scenario is for the nominating committee to talk through the board director’s responsibilities during the search and recruitment process. There’s no point in recruiting someone who isn’t even willing to meet the minimum board director requirements. The discussions about board director responsibilities should expand and continue throughout the selection process.

The orientation is the best time to provide a written job description for the board director position to the new nominees. Trustees should understand that they’re expected to read all board meeting materials thoroughly and come to the meeting prepared to ask questions and participate in discussions. They should also either be directed to serve on a committee or receive a committee assignment. Along those lines, they should also be clear on their duties and responsibilities as committee members.

Board directors should be informed at the orientation or early in the process that fundraising is a priority and that they’re expected to participate. They should also be aware that they’re expected to contribute some of their own funds on a regular basis if that is a policy of your board.

All board directors should know what their goals and expectations are so there are no surprises at the annual self-evaluation time. Trustees are more invested in the organisation when the board gives them an opportunity to set some goals for themselves. In addition, it helps if boards assign a ‘buddy’ or mentor to support and guide new board members through the first year of board service.

Diarmaid Ó Corrbuí, CEO of Carmichael, points out, “I would advise it for a lot of boards, board evaluation processes every year can be a good way of identifying skill gaps or areas that might need a particular bit of attention. It may be a collective need of the board or it may be an individual board member need. So, looking at the board needs as a whole, but also individual board members and looking at how you might address that. So we would put on things every year like a refresher on board roles and responsibilities, even though we have an experienced board, but it’s no harm for a board to just remember what are our core responsibilities and how are we manifesting those and how we operate as a board?”

Reasons for conducting annual board self-assessments

While much of a board’s work is done behind the scenes, the work they do and the decisions they make have a far-reaching effect. One important compliance issue that boards can address through board self-assessments is to ensure that board directors don’t have any current or impending conflicts of interest.

Donors, staff, vendors and whole communities start to lose trust when board directors fail to perform at their highest capability. It’s vital that boards take the necessary time to do an annual self-assessment of their performance to look for opportunities to improve.

Here are five key reasons for conducting at least an annual self-assessment:

1. Improvement and growth: Self-assessments help identify areas where the board can improve. By evaluating their performance, board members can pinpoint strengths and weaknesses, leading to more effective decision-making and better governance.
2. Accountability: Regular self-assessments ensure that board members are accountable to the organisation and its stakeholders. This process helps maintain transparency and trust, which are crucial for the board’s credibility.
3. Strategic alignment: Self-assessments can help ensure that the board’s activities and decisions are aligned with the organisation’s mission and strategic goals. This alignment is essential for the long-term success and sustainability of the organisation.
4. Skill development: Through self-assessments, board members can identify gaps in their skills and knowledge. This can lead to targeted training and development opportunities, enhancing the overall effectiveness of the board.
5. Enhanced collaboration: The process of self-assessment often involves open and honest communication among board members. This can foster a culture of collaboration and teamwork, which is vital for addressing challenges and making informed decisions.

Volunteer boards should self-evaluate to stay accountable and improve. Our board self-evaluation checklist simplifies reviewing performance, committees, risks, and director roles. Equip your board for success — download the checklist today. 

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Online surveys can streamline self-assessments

Board management software such as BoardEffect can help streamline the process for board self-assessments. Board administrators can use the surveys tool to create a variety of question formats. Boards can also keep the results from year to year for comparison purposes and to use as a template for the following year’s self-assessment. These can be anonymised so that board members can give feedback freely.

Busy board directors may also prefer an easy-to-use online format where they can log in or out to complete the questionnaire at their convenience. Most directors also appreciate the convenience of being able to complete assessment questionnaires using any device, at any time and in any setting they happen to be.

Evaluating the board’s functioning as a group

Board directors work individually to fulfill their duties. It’s equally important for the group to function well as a whole. Group dynamics have much to do with that. Some boards find that they get the most objective results when they ask a third party to facilitate their board self-evaluation.

The manner in which board directors interact with one another has a major impact on their effectiveness. Board directors should be evaluated not only on the knowledge and expertise that they bring into the boardroom, but also how well prepared they are at meetings and how well they interact with other board directors.

Positive boardroom behavior means that board directors are asking the right questions, framing their comments and questions in a constructive manner, and building on the comments and opinions of their peers. Board directors should be evaluated on their ability to remain objective rather than to allow personal or past experiences to dominate their perspective.

Board directors should also be evaluated on their understanding of the differences between their role and management’s role. For example, can board directors support and guide managers effectively without overstepping their role of oversight and micromanaging them?

Boards would be remiss in failing to consider the interpersonal and group dynamics among board members. This part of the evaluation should be as rigorous and objective as possible. Facilitators of the process should encourage an environment of mutual respect, honesty and trust as they work through topics of board dynamics. It’s important to thoroughly assess such topics as group thinking, open-mindedness, acceptance of dissenting opinions and addressing issues of board director ineffectiveness.

The board self-evaluation should have a positive, encouraging tone that helps to set the stage for a healthy, eager and energised board. An impactful and viable board self-assessment process leaves board directors asking themselves how they can improve and what more they could be doing. This is the outcome that boards should be striving to achieve.

Technology to support self-assessment

BoardEffect provides a central, secure location to help facilitate your board self-evaluation.

• Add self-evaluation to your upcoming board meeting agendas.
• Use the surveys and polls to gather information and feedback for the evaluation process.
• Workroom spaces can be created for your nominating and governance committee to collaborate together.
• Self-evaluation reports and results can be stored centrally in your secure Resource Library for future reference and benchmarking.

Reach out today to find out how we can support your board.