Independent External Board Evaluations
In a business climate of accelerating disruption, change and regulatory focus, accountable Boards and Chairs increasingly look toward a rigorous evaluation of their effectiveness, strengths and areas for development.
Advanced Boardroom Excellence has been carrying out structured Independent External Board Review Evaluations since 2011 and the revision of the FRC Governance Code and the Guidance on Board Effectiveness.
The Independent Board Review Evaluations consist of two options:
The ‘Online Validated’ Board Review Evaluation
Our ‘Online Validated Board Evaluation’ approach not only provides value for money but unlike other self-assessment tools our on-line questionnaire is followed up with focused telephone interviews to validate the content and raise queries where inconsistency occurs. It also provides the opportunity for a more nuanced discussion than is possible with a purely on-line survey.
The ‘Tailored’ Board Review Evaluation
The ‘Tailored Board Review Evaluation’ approach provides a more comprehensive and detailed path to an Independent Externally Validated Board Review Evaluation. In addition to a flexible degree of ‘customisation’ and focus, this approach enables us to undertake a more in-depth individual one-to-one interview session and explore key areas in greater depth.
Both our approaches can be customised to meet your specific requirements and Regulatory regime.
They have at their core one to one Director interview validations, Board and Committee observation and documentation analysis and a final report including benchmark comparison. They also provide for a follow through working with the Chair and the Board to provide support on the development plans and options for the Board.
Our dynamic and engaging developmental framework for Independent External Board Evaluations receives positive responses from Chairs for its added value and productive perspective in contrast to what has otherwise been a sterile industry offering.
Overview of the Developmental Framework for External Board Review Evaluations
Agree scope and logistics
Online Validated Option: Launch Online Validated Board Evaluation Questionnaire with follow-up targeted focused telephone interviews
Customised Option: conduct structured in-depth one to one interviews
Observation of the main Board and its Committees
Review Board and Committee papers and Governance Model
Report development
Initial feedback to the Chair on the draft report
Final report and recommendations Individual feedback on each Director focused on their development
Presentation and feedback to the Board
“Added value to us at Advanced Boardroom Excellence means: supporting the Board to identify the potential for performance improvement; devising an action plan for moving forward; and focusing on cultivating an effective Board culture” – Helen Pitcher OBE, Chairman Advanced Boardroom Excellence
On-line Board Director Effectiveness
As part of our Board Effectiveness Services, we have developed an On-line Board Director Effectiveness Survey. This is often used with the Main Board Review to provide a detailed analysis of each Board Director their strengths and areas for development. This approach provides a rigorous set of dates for the Chair’s developmental discussion with each Director.
We use a structured questionnaire of the key capabilities and skills required of an effective Board Director supplemented by the specific sector requirement of the client. The questionnaire is then used to provide anonymous feedback on each individual Director by their peers.
We then produce an individual Director profile focus on their strengths and areas for development. This is used by the Chair to supplement their annual feedback to each Director. Also, for the Chair’s annual feedback it is given to the Senior Independent Director.
‘On-line’ Board Skills and Capabilities Analysis
As part of our Board Effectiveness Services, we have developed an On-line Board Skills and Capabilities Analysis.
This is designed to provide the Board and the Chair with an insight into the strength and depth of their Capabilities and Skills. In particular, it is used to analyse the degree of importance of Future Skills and Capabilities required by the Board and the levels of Capabilities and Skill contained within the existing Board.
The On-line Skills and Capabilities Analysis assesses the core Capabilities and Skills required by the Board for the Future and any additional emerging Skills and Capabilities driven by Sector or individual Company needs. These are assessed for their Importance to the Future of the Business and the level of Current Capability contained within the Board.
This enables a Skills and Capabilities Review Report to identify the areas for future resourcing and development for the Board. This provides the basis for a Resourcing Plan for the Board and its Committees and a clear picture of the areas of potential development for the Board.
Governance Support
We are able to provide a wide range of additional Governance Support Services including:
INDEPENDENT FACILITATED BOARD DISCUSSIONS, providing support to the Chair and Company Secretary to independently facilitate discussions on key areas for the Board. These often take place as part of an Away Day Session.
DEVELOPING AS A BOARD, facilitation sessions focused on Board Development, Alignment and Vision.
EXECUTIVE BRIEFING, a facilitated session for Executives who regularly inter-act and present at the Board, focused on the roles of the Board and the Executive Leadership with insight and alignment to create an Effective Board.
COMMITTEE STRUCTURES, advising on the appropriate blend of Committees and Advisory Panels with appropriate Terms of Reference.
Board Evaluation Moderated Benchmark Comparison
Our Independent External Board Review Evaluations use the Advanced Boardroom Excellence Board Evaluation Benchmark to provide a comparison against actual Board Evaluations for FTSE 350 companies.
The Advanced Boardroom Excellence Moderated Benchmark Comparison of Board Effectiveness draws on the Board Evaluations we have undertaken since 2011. It uses actual data and areas of Board Evaluation and Effectiveness articulated in the FRC’s Guidance on Board Effectiveness which supports the FRC Corporate Governance Code.
The Moderated Benchmark consists of an averaged score for each Board Effectiveness area, obtained during the one-to-one interviews conducted as part of our Board Evaluations. The highest and lowest moderated scores in each area are also included to allow effective comparisons to be made.
Independent Board Evaluations that we have undertaken:
Financial Services
CYBG (FTSE 250)
Friends Life Group (FTSE 100)
Royal Bank of Scotland (FTSE 100)
UK General Insurance (Private)
Chaps (Private Member Shareholders)
Credit Cheque Clearing Company (Private Member Shareholders)
New Day, is a leading consumer finance provider specialising in the UK credit Card market (Private Company)
OMG (The Old Mutual Group) (FTSE 100)
Liverpool Victoria Group (Mutual Society)
Bacs (Private Member Shareholders)
Unity Trust Bank (Bank focused on social enterprise sector)
Non- Financial Services
Workspace (FTSE 250)
Lonmin (FTSE 250)
Persimmon (FTSE 100)
Hunting Plc (FTSE 250)
Grainger (FTSE 250)
CCEP (FTSE 100)
Miller Group (Private Company)
Spirit Group (FTSE Small Cap)
Find out more
If you’d like to find out more about the services we can offer you and your organisation, please contact us on admin@abexcellence.com.
