To do or not to do?
The first question is … should you evaluate your Board’s performance, in some manner?
The second question is … why would you not evaluate the key leadership entity?
The UK Corporate Governance Code is only “mandatory” (“comply or explain” princples) for premium listed companies, which loosely relates to FTSE 350 and a small number of others. See diagram below.
The Code refers to “smaller companies” in its text, which relates to non-FTSE 350 (some premium and all other listed companies which includes standard and AIM listed companies).
The above totals 2700 plus companies, which is small in number of UK companies but in economic terms it is a fair percentage of UK business. Outside this group there are a large number of very large unlisted entities as well as the SME market, public sector and NFP entites.
Where does your organisation fit?
Mandatory – “Comply or Explain and for these two groups …. it is deemed Best Practice
Expected to follow Will gain business value
UK Code requires an annual rigorous and robust Board Evaluation
FTSE 350 - External once every 3 years
One common fact – all companies can afford to improve (particulary in difficult economic times) to secure their longevity. Good leadership by the Board which defines good governance practices will ensure improved effectivness of all people and systems within the company.
Therefore, it would be of value for the Chairman to embrace the evaluation process, understand the value, the ways to approach the exercise to maximise benefit, and determine which approach would be appropriate for the business (annual exercise) and commit to taking action on recommendations distilled through the process.
This process belongs to the Board and to the Chairman, who is the leader of the board and provides the company with leadership and direction - a key person who wants to give of his best, ensuring that leading by example will filter to all employees.
Now, the question is what and how ….
This is an annual exercise to be taken from the ground up each year see our Annual Exercise and Evaluate Approach to understand your options.
Please feel free to make contact with us on boardevaluations@geniusmethods.com
Further information
Please view additional pages on Board Evaluation either via the drop down menus above on the Board Evaluation tab or click on links below:
Who should carry out a Board Evaluation?
Do do or not to do a Board Evaluation?
Evaluate your approach to a Board Evaluation
Progressive Approach to evolving Board Governance
Find out more…
Make your own assessment of our Board Evaluation
services by sampling our trial sample extract of a questionnaire.
Email us on boardevaluations@geniusmethods.com requesting access to the trial copy
or simply get in touch for an unbiased, honest view of the available, suitable options.
Quis custodiet ipsos custodes?*
(From ‘The Satires of Juvenal’)
‘Who will guard the guards themselves?’; also sometimes translated as ‘Who watches the watchmen?’
A succinct encapsulation of the true spirit of corporate governance.