Board of Directors are agents of the shareholders and liable for monitoring and control of the

undertakings and activities of the organization. In, todays corporate world corporate governance
restricted not only to shareholders but all stakeholders as well. Organizations strategic route and
leadership towards success is led by board in partnership with most senior executives. Board
needs to be collectively aware of the responsibilities and rules and regulations subject to legal
and international standards compliance. Diversity in terms of expertise, skills and perceptions is
critical to the effectiveness and making an informed decision (Independent-sector, 2009).
Organizations requires board to be vigilant and position themselves safeguarding organization
interests over personal interests. Board self-evaluation allows board and its members; critically
assess the understanding of their duties against expectations and benchmarks. Board acts as a
custodian of mission and vision of the organization that needs to be periodically evaluated and
reviewed. Board evaluations is necessary requirement to be listed on New York stock exchange
as it is deemed important as organizational structure consists of individuals that are in control as
well as liable for corporate governance (Kuprionis, 2011) .
Self-evaluation depend around two significant variables; structure of data-collection and
confidentiality of data. These variables leads to four approaches to self-assessment of board;
informal, methodical, legalistic and credulous (Stybel and Peabody, 2005). Board can assess its
progress towards governance issues and activities using worksheets and filing it with every board
meeting to keep a track of performance review towards effective governance.
Table 1 Board self-evaluation mechanism worksheet

TOPIC PRIORITY
COMPLIANCE STATUS AND
ACTION STEPS
WHO IS
RESPONSIBLE
TARGET
COMPLETION
DATE
STATUS
Laws and Regulations


Code of Ethics


Conflicts of Interest


Whistle- blower Policy


Document Retention and
Destruction

This worksheet allows the board to build on the self-evaluation process in a systematic and
logical way to critically evaluate each dimension of governance pertaining to organization
activities. The expert should understand the key factors in evaluation schema such as purpose
and objectives and individuals involved in the process. Self-evaluation ranges from full-board
self-assessment to individual self-assessment through interviews, focused group discussions, and
written reviews. Full-board self-evaluation provides the effectiveness of the entire board as a unit
in alignment to firms strategies. On the other side, individual self-evaluation takes the form of
peer-review and individual self-evaluation. These both approaches allow the directors to
critically evaluate in-depth information regarding directors working and intention and encourage
focused and effective developments towards improvement. Interviews and discussions provides
opportunity for more holistic and in-depth analysis however written surveys lacks the holistic
feature but are focused enough to conclude more presentable results (Rubenstein and Murray,
N.A). The framework for board self-evaluation begins with gathering information from various
sources towards implementation of the process.

Figure 1Framework for self-evaluation
Gathering information from various resources; external
and internal sources
Determinants of self-evaluatiom
Who is to be evaluated ?
What are the purposes of the whole excercise?
On which crtieria each individual will be scruitnized
Prioritize each criteria and establish direction
Type and Methodology
Full-board self evaluation
Individual/ peer self-evaluation
Facilitator in the process
Private / public in context of the organization
Impelement the self-evaluation process
Board self-evaluation form
EVALUATION FACTOR
4
excellent
3
very good
2
sufficient
1
unacceptable
Comments
The board
Members have complete understanding
of the roles and responsibilities as per
rules and regulations.

provides a strategic direction and
leadership and consistently reviews for
future as per environmental scanning.

has mechanism for evaluating the
impact of mission on organization's
offering and vigilant for un-anticipated
external environment

is more focused on long-term policies
rather than short-term goals

critically analyze the decisions and
implications of each approved decision

Board Structure
At least a majority of the board
members are independent

Currently has diversity in expertise and
skill set that allow board to make
effective and governing decisions

Comprises of sufficient number of
committees as per required according to
corporate and governance charter

Board meetings and procedure
The number of board meeting are
adequate in reference to the context of
organization and external environment

All proceedings of the board meeting
are recorded accurately and reviewed
on timely basis






Board Management Relations
comprehensive and focused policies and
procedure for every material activities
and risk management in the
organization

has developed a complete set
performance indicators utilized for
performance management

ensures the flow of information from
management to board and vice versa on
consistent basis

reviews and critically evaluate each
dimension of the variation from
proposed strategy and long-term/short-
term plans

effective mechanism for taking actions
against staff and management







Individual self-evaluation
EVALUATION FACTOR 4
EXCELLENT
3
VERY GOOD
2
SUFFICIENT
1
UNACCEPTABLE
Comments
The board member/ director
actively manages all stakeholders and
shareholders interests and relationships

Promotes and develop opportunities for
developing a sense of minority
shareholder participation in decision
making

takes corrective actions and vocal over
discrepancies and deficiencies

better understanding of the governance
issues, legal and regulatory compliance
and ethical requirements for the board

practices confidentiality and high
integrity over ethical practices

contributes to the strategic planning and
formulation process

keeps well-informed with sector latest
developments

convincing other board members
tactfully and using logical approach

understands the implications of board
decision on organizational performance

prepared for meetings and keep
updated information about financial and
other key performance indicators

judgments and decisions or verdict on
any plan is free of all biases

behavior is consistent and adhere to
organization code of conduct


References
Independent-sector., 2009, The Principles workbook: Steering your Board towards good
governance and ethical practice, Independent sector and BoardSource
Kuprionis, M., 2011, 'Understanding Board Evaluations: Analysis of Purpose and Key Elements',
Corporate Governance Advisor, 19, 3, pp. 8-12
Stybel, L, and Peabody, M., 2005, 'How Should Board Directors Evaluate Themselves?', MIT
Sloan Management Review, 47, 1, pp. 67-72
Rubenstein, A and Murray, D., N.A, Board Self-Evaluations: Striking the Right Balance, MLR
Holdings LLC