What is the scope of a review?

The Effective Board provides bespoke board review services designed to meet the client’s individual requirements.

In terms of scope, The Effective Board recommends that in order that the opportunity of an externally managed board review is maximised and as thorough as possible, this should cover reviews of the performance of the Board, of each the Board Committees and of all directors.

The Effective Board also believes that in order to make a review truly rigorous, avoid being introspective and add the most value, that the views of senior management should also be sought.

The Effective Board would strongly recommend that at least the Company Secretary should be included.

The Effective Board also believes further value can be sought by involving other third parties and stakeholders such as the External Auditor and investors.

What approach should be used?

As to the approach, The Effective Board will seek to agree this with the Client. For example, The Effective Board can draft bespoke and detailed questionnaires. There would be one for the Board, one for each committee and one to address the individual directors’ contributions. Or The Effective Board can use an interview approach or indeed a combination of both of these approaches.

The contents of the questionnaires or the agenda for interviews would be agreed with the Company and any specific requirements incorporated.

What would The Effective Board be specifically analysing through the process?

Through the questionnaire and/or interview process, The Effective Board seeks to understand whether the directors have thoroughly discussed and agreed the use of shareholders’ funds (the what, where, when how and why) to ensure the company is successful with full consideration to the risks inherent in the strategy, plans and the company’s operating environment. This would then be followed by analysing  how effective the Board is in ensuring the implementation of the strategy and plans and evaluating all the activities of the Company including stakeholder engagement.

For each Committee under review, either the questionnaire or interview process is designed to analyse how each Committee fulfils its terms of reference.

For the individual directors, each participant will be asked to comment on what each directors’ contribution is, how they go about it and what he or she could do to improve their contribution.

The Effective Board does not insist but is happy to attend and observe a meeting of the Board and one of each of the Committees.

What company documentation does The Effective Board review as part of the process?

The Effective Board would agree the documentation needed prior to starting a review.

Typically, in addition to the publicly available information such as reports and presentations, policies, the schedule of matters for the Board and the Terms of Reference for the committees, The Effective Board may request to see past board papers and minutes of the meetings of the Board and its Committees.

How long would the process take?

With respect to scheduling, the time taken to do the review would depend on the scope and approach taken. This, in turn, depends on the availability of participants from the Company. Once the mandate is approved, The Effective Board would agree a precise schedule with the Company and produce a detailed plan laying out each step of the agreed process. 

However, from experience, the most comprehensive approach using a questionnaire and interviews would take up to three months. By contrast, in its briefer form such as interview only or a questionnaire only , a review could be conducted in about six weeks.

Who sees The Effective Board’s reports?

In terms of Reporting, The Effective Board will agree with the client the reporting process and the distribution of the reports.

Does The Effective Board help with the Board Evaluation section in Annual Reports?

If requested, The Effective Board is happy to assist Clients with the production of the board review section of the annual report and drafting of actions plans.

Does The Effective Board offer a follow up service?

The Effective Board also offers a service to assist clients with the resolution of issues arising from the review or to help with any subsequent internally managed reviews. The Effective Board can support the client in several ways such as drafting questionnaires to check progress from one review period to another, provide reports or simply advise on the drafting of questions to be used in subsequent reviews.

Which companies has The Effective Board worked with?

The Effective Board’s team has experience of conducting board reviews since 2005 and  a list of clients and references can be provided on request.

Advisory Services

The Effective Board is fully committed to assisting clients to improve the effectiveness of their board. With the available skills and experience of the Team, The Effective Board is happy to provide further bespoke advice in order to help clients achieve their goal of having an effective board. Please contact any member of the team with your requirements. 

Diversity Policy

The Effective Board believes that the most effective boards are truly diverse in their composition. They can offer a depth and breadth of insight, perspective, and experience to the executives that non-diverse boards cannot. Diversity addresses age, ethnic and gender diversity as well as skills, competencies, philosophies, and experience.

Through its services, The Effective Board is committed to helping Boards improve their diversity.