What are the most effective ways to evaluate board performance and ensure fiduciary duties are met?

1 Define clear expectations

The first step to evaluate board performance is to define clear expectations for the board members and the board as a whole. These expectations should be aligned with the mission, vision, and goals of your organization, and reflect the roles and responsibilities of the board. You should also establish criteria and indicators to measure the performance of the board against these expectations, such as board attendance, participation, contribution, diversity, skills, and governance. You can use tools such as board charters, bylaws, policies, and codes of conduct to communicate and enforce these expectations.

4 Review and update expectations

The fourth step to evaluate board performance is to review and update the expectations for the board members and the board as a whole. These expectations should be reviewed and updated regularly, at least once a year, to reflect the changing needs and priorities of your organization and the stakeholders. You should also involve the board members and the board committees in the review and update process, and solicit their input and feedback. You can use tools such as strategic plans, annual reports, and stakeholder surveys to inform and support the review and update process.

5 Educate and train board members

The fifth step to evaluate board performance is to educate and train the board members on their fiduciary duties and responsibilities. These duties include the duty of care, the duty of loyalty, and the duty of obedience, which require the board members to act in the best interest of your organization and the stakeholders, to avoid conflicts of interest and self-dealing, and to comply with the laws and regulations that govern your organization. You should also provide the board members with the necessary information and resources to perform their duties, such as financial statements, risk assessments, and legal advice. You can use tools such as orientation programs, workshops, webinars, and newsletters to educate and train the board members.

6 Foster a culture of accountability

The sixth and final step to evaluate board performance is to foster a culture of accountability among the board members and the board as a whole. This culture should promote transparency, integrity, honesty, and trust, and should encourage the board members to hold themselves and each other accountable for their performance and their fiduciary duties. You should also recognize and reward the board members who demonstrate excellence and commitment, and address and correct the board members who fall short or violate their fiduciary duties. You can use tools such as recognition programs, performance appraisals, and disciplinary actions to foster a culture of accountability.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?