How to evaluate the board’s effectiveness

How to evaluate the board’s effectiveness

To effectively evaluate the board, you must have set targets against which you are evaluating the board members.

This calls for an effective governance structure and separation of powers.

At the topmost, there must be the owner of the business. For publicly listed companies, these are shareholders with an equity certificate. The shareholders, at the AGM or annual general meeting, must elect the board members and set clear targets for the board so appointed.

For emphasis, when the owner/ shareholders appoint the board, she/he must give them a score card or targets that are measurable. According to Kaplan and Norton, a balanced scorecard […] Read more