Making Board Evaluations Matter

BOARD EVALUATIONS are often treated as a regulatory requirement — a necessary annual exercise, usually facilitated by the company secretary or an internal HR team, quickly completed, and just as quickly forgotten. Yet when done meaningfully, board evaluations can be powerful tools to strengthen governance, enhance performance, and deepen strategic engagement. There is a stark difference between a perfunctory review and a genuine, reflective process. The former maintains the status quo. The latter drives improvement. The problem with status quo Many evaluations today are superficial. Directors fill out forms, rate performance on a numeric scale, and offer general comments. The focus often rests on individual director ratings rather than on how the board or board committees function as a collective. Moreover, there is a strong culture of politeness in many boardrooms. Directors are hesitant to critique one another, especially in high-status or low-trust environments. This leads to a phenomenon of “polite underperformance” — where everyone is competent, but difficult issues remain unaddressed. Another challenge is conflict avoidance. Boards are often composed of highly accomplished individuals. The assumption is that if each director is capable, the board must be effective. But governance is a team sport. It is the interplay — how directors collaborate, challenge, and support — that determines effectiveness. What should a good evaluation cover? An effective board evaluation goes beyond attendance and general satisfaction. It asks questions like: . Are we spending enough time on strategy and future-oriented topics? . Do we challenge management constructively, or default to consensus? . How well do we understand the talent pipeline and succession plans? . Are we effectively balancing fiduciary responsibilities with strategic guidance? . Is the board composition aligned with the company’s future needs? Crucially, the evaluation should assess collective performance. A board might have individually brilliant directors but still fall short if there is lack of cohesion, clarity, or candour. From ratings to reflection Numerical scoring systems have limited value. While they provide a baseline, they rarely lead to insight or action. Instead, boards should prioritise qualitative feedback: What is working? What could be better? What are we avoiding that needs addressing? Open-ended responses, thematic analysis, and structured debriefs yield far richer insights. They signal that the goal is not compliance but effectiveness. External facilitation can help. An independent consultant can conduct interviews, anonymise feedback and guide the board through a reflective discussion. This helps surface truths that may not emerge in peer-to-peer formats, especially in boards with power asymmetries or founder influence. Turning evaluation into action A common pitfall is treating the evaluation as the end, rather than the beginning, of change. Boards conduct the review, share a summary in one meeting, and move on. Instead, evaluations should lead to an action plan. If directors feel that board meetings are too operational, then a change in agenda design is needed. If strategic discussions are rushed, carve out dedicated time. If director onboarding is weak, enhance orientation programmes. Progress should be reviewed periodically. Embedding feedback loops into the board calendar demonstrates seriousness and builds credibility. The role of the Chair No evaluation process can be successful without strong leadership from the Chair. It is the Chair who sets the tone — inviting feedback, encouraging honesty, and ensuring evaluations are safe, constructive, and non-defensive. A good Chair also role-models vulnerability. By openly seeking feedback on their own performance, they create space for others to do the same. They also ensure follow-through, converting insights into agenda changes, role adjustments, or even director succession when needed. Creating a culture of reflection The best boards are learning boards. They reflect not just annually, but continuously. After key decisions, after crises, or at the end of board offsites, they ask: What did we learn? What would we do differently? Some boards have even adopted the practice of short post-meeting reflections. At the end of each meeting, directors spend five minutes discussing what worked well and what could be improved. Over time, this creates a rhythm of reflection and a culture of continuous improvement. Why it matters more than ever In an era of increasing complexity, stakeholder scrutiny, and reputational risk, the expectations from boards have never been higher. Investors, regulators, employees, and customers want boards to be agile, informed, and accountable. Superficial evaluations are a missed opportunity. They waste time, erode trust, and reinforce mediocrity. But meaningful evaluations can be transformative. They reveal blind spots, foster alignment, and elevate performance. The boardroom mirror Board evaluations, when done right, are a mirror. They reflect not just what is visible, but what lies beneath the surface. They reveal patterns, tensions, and opportunities for growth. Moving from a tick-box approach to a thoughtful, action-oriented process requires intention and courage. But the rewards are clear: stronger boards, better decisions, and more resilient organisations. (The writer, a former head of Crisil and Omidyar Network India, is the author of the book ‘Leadership Beyond the Playbook’. Views are personal.)

Making Board Evaluations Matter

Sign in to read full story