Independent External Board Evaluations
In a business climate of accelerating disruption, change and regulatory focus, accountable Boards and Chairman increasingly look toward rigorous evaluation of their effectiveness, strengths and areas for development.
At Advanced Boardroom Excellence we are able to offer two types of Independent Board Evaluations:
The ‘Online Validated’ Board Evaluation. For planning in these times of remote working, our online validated board evaluation approach not only provides value for money but unlike other self-assessment tools our evaluations are followed up with focused telephone interviews to validate the content and raise queries where inconsistency occurs. This enables you to have the satisfaction of an externally validated board evaluation.
The ‘Customised’ Board Evaluation provides a more comprehensive and detailed approach to an Independent Externally Validated Board Evaluation.
Both approaches have at their core one to one director interview validations, Board/Committee observation and documentation analysis and a final report including benchmark comparison.
Both Board Evaluations also use the Advanced Boardroom Excellence Board Effectiveness Benchmark to provide a benchmark comparison against actual Board Evaluations undertaken for FTSE 350 companies.
Our dynamic and engaging developmental framework for independent external board evaluations receives positive responses from chairmen for its added value and productive perspective in contrast to what has otherwise been a sterile industry offering.
At Advanced Boardroom Excellence, we undertake development-focused independent external board evaluations to deliver the effective viewpoint required by Chairmen and the board. Our board review processes are conducted sensitively and intelligently by our team who have both board experience, and an awareness of the challenges that face Chairmen, Non-Executive Directors and Executive Directors.
We provide evaluations of the whole board, its committees, and individual directors tailored to your requirements. We then recommend actions in line with a framework for board effectiveness and your stated strategic goals.
Our Developmental Framework for External Board Reviews
Agree scope and logistics
‘Online Validated’ Option: Launch ‘online validated’ Board Evaluation Questionnaire with follow-up targeted board effectiveness interviews
Customised Option, conduct structured in-depth board effectiveness interviews
Observation of the main board and its committees
Review Board/Committee papers and governance model
Report development
Initial feedback to the chairman of the draft report
Final report and actions
Individual feedback on each director focused on their development
Board feedback
“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
The Board Dynamics Profile
For boards that will benefit from a greater in-depth look at their own development, the Advanced Boardroom Excellence Board Dynamics Profile uses a tried and tested approach to create a collective profile of the Board’s preferences and behaviours as a group.
This additional service option can be integrated into the independent external board evaluation or undertaken as a specific initiative and gives a focus and engagement beyond the traditional Board Review.
This exciting approach provides the Chairman and board with a fresh impetus and perspective in respect of their own development and growth. Also see Development for the Board.
Board Evaluation Moderated Benchmark Comparison
Our Independent External Board 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 (FTSE250)
Friends Life Group (FTSE100)
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)
Code of Practice – Independent External Board Evaluations
Board evaluations, as set out in the UK Corporate Governance Code, are one of the principal areas of focus for building board effectiveness. However, there is a perception that the scope and service quality of evaluations is variable, and a concern about standards.
The draft Code of Practice developed by Advanced Boardroom Excellence seeks to begin a discussion to address and resolve this perceived lack of market confidence and to instil a more coherent framework to allow companies and consultants to work more effectively together.
The Draft Code has been formally handed to the Institute of Chartered Secretaries and Administrators (ICSA) who will run a public consultation to which all market participants and interested parties will be invited to contribute. The consultation and consolidation process is due to be published in 2020.
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.
