A board performance reviews, also known as a board evaluation or effectiveness review, is a structured process designed to assess the functionality and efficiency of a board and its members. This review ensures that the board effectively fulfils its roles and responsibilities, contributes to the organisation’s success, and adheres to best corporate governance practices.

These reviews typically cover a range of board activities, including governance practices, decision-making processes, strategic oversight, and the individual contributions of directors. A board performance review also examines whether the board has the right composition—meaning an appropriate number and balance of skilled and experienced individuals—and whether it maintains the right dynamics to perform its duties effectively. This includes setting strategic direction and challenging organisational performance.

The needs of a board and its directors can evolve over time based on the organisation’s context. For instance, a start-up may require different board dynamics compared to an established company. Periodic reviews ensure that a board’s structure and practices remain relevant and effective as the organisation grows and changes.

Directors have a legal duty to ensure that their organisations achieve their intended purposes. Therefore, they must possess the necessary skills and experience, focus on the right priorities, and demonstrate effectiveness. Organisational success, especially during difficult periods, often depends on the board’s capability to manage and supervise the organisation in a responsible manner. This includes regularly evaluating and refining their approach and thinking.

Ultimately, conducting regular board performance reviews is crucial for maintaining an effective and responsive board, thus positioning the organisation for sustained success.