The board is one of the most influential entities within a company. An effective board will translate into an effective organisation, ensuring that investors and other stakeholders are kept happy. In this article we explore how companies can go about reviewing board performance in order to support the performance of the company itself and ensure the practice of good governance.
Board performance reviews are an important element of corporate governance. It is therefore necessary to better understand how small and mid-sized quoted companies undertake these reviews, how they differ between companies of different sizes & stages of development, and what can be learnt to develop good practice for the mid-cap ecosystem.
The recently published QCA Board Performance Review Report , created in collaboration with Downing LLP and Henley Business School, analyses the current approaches to board performance reviews at various organisations. Using a framework of proactive and reactive boards, the research shows a variety of formal and informal approaches. Within this context, informality can be positive dependant on the level of board engagement.
With the analysis of the nuances and effectiveness of the different approaches to the board performance review process, the QCA Board Performance Review Guide has also been developed.
This guide provides further detail into principle 7 of the QCA Corporate Governance Code and is a practical tool which outlines how a board can realise further value from a regular review of its performance. It may not entail formalising an informal approach, but does look at increasing board effectiveness. Within this guide are 6 key applications for an effective board review process.
Our research reports are free to download for all, however our guides incur a fee for non-members. Please visit our publications page for more infromation