Board Assessment

The board has three major roles in a company : providing direction and establishing strategy and vision of the company, controlling and monitoring the management and providing assistance and advice. 

Board evaluation analyzes these roles and board’s responsibilities, and assesses how they are accomplished.

The performance of the board depends on several criteria:

  • Board structure: composition, constitution and diversity of the board, competences of its members, various committees, regularity of meetings, procedures…
  • Dynamics and activity of the board: yearly agenda, information available, interactions and exchanges with the CEO and stirring committee, cohesion, active and constructive participation in board meetings
  • Strategic orientation and governance: board’s role and commitment in company strategy
  • Financial Reporting Process, Internal Audit and Internal Controls: sincerity, solidity and stability of financial and other controls regarding relating party transactions, risk management…
  • Monitoring Part: Monitoring of policies, strategy implementation and systems
  • Supporting and Advisory Role and The Chairman’s Role

 The assessment of the performance of the boards is mainly concentrated on how the boards have performed on all these indicators.

 Flexible Methodology, results and periodicity.

Most of the time, Board evaluation is a yearly assessment either by decision of the company or by regulatory requests. Methodology of assessment has some degree of flexibility and depends on the specific situation of the company, corporate structure, board culture and processes.

The results of Board Assessment could vary from minor amendments to board processes, changes in the composition and in committees to important steps modifying the criteria that lead to board shortcomings. The issues must result in an action plan to be implemented and should deserve the commitment of the board and also the Top Management.

Boards decide about the choice of the assessments’ periodicity. Yearly assessment is the most commonly followed period for Board evaluation.

Even if internal Assessments have many advantages, especially if they are conducted by Governance and Nomination Committees, an external evaluation should be more independent and transparent and should bring new perspectives, vision and approaches.

ALHAMBRA INTERNATIONAL Board Services

In order to succeed in a very competitive and changing business environment, companies and organizations need to have a strong, independent and efficient board. Besides financial performance, boards have to fulfil corporate social and environmental responsibility and promote diversity and ethics. Thanks to its strong expertise in Executive Search and Leadership Consulting in various international shareholders’ contexts (Corporate, Private Equity and Family), Alhambra International is the perfect Partner to advise its customers to build and enhance their boards.

Our team combines a strong knowledge of various national governance codes and ethics with an overview of the boards trends and good practices, including financial, social, talent and environmental issues.

Through our Board Assessment services and Director Recruitment services, we can support your board and contribute to improve its efficiency, cohesiveness and performance.

Boards Assessment services

Board performance is critical for the success of companies which evolve under strong pressure coming from investors and shareholders. Our Assessment methodology is specifically adapted to each governance context, in order to eliminate barriers and optimize strengths to enhance performance.

The Assessment Methodology is based on the formulation of a questionnaire which is addressed to each individual administrator.

Face to face interviews will be organized with each Director in order to exchange and understand clearly their answers. All the responses and interviews will be analyzed with a global report with key findings and recommendations submitted to the Board.

The council will establish an action plan based on this report, with an agenda implementing the decisions and reviewing axes of improvement.

These evaluations include each Director but also the various committees which are an integral part of the board. Reports and analyzes include quantitative and quantitative methods with relevant data in order to bring better objectivity in the results.

In some cases, the board evaluation will be completed by the Assessment of each individual Director with a similar methodology. This kind of evaluation is made in some specific contexts in order not to refrain board dynamics and performance. Among the criteria evaluated: contribution to the strategic vision, active participation in boards and committee meetings, relationship and communications between the director and the Top Management.

Our areas of expertise cover : Board Assessment and Efficiency and some other services including board composition, compensation and best practices.

Director Recruitment services

Selecting and recruiting an individual director is crucial for each board. Boards should combine diverse skills and experiences which fit with the strategy and vision of the company. Boards members should also be aware about the technological trends and its impacts on the organizations, workforce planning and also on the evolution of the business models. Social and environmental issues are also part of the commitment of the organizations and its board members.

Our approach in the selection of boards member will be similar to our Executive Search practice. Direct Approach should be favored, with in-depth interviews with the selected candidates and evaluation report mentioning academic credentials, career history, strengths and weaknesses… transmitted to the Chairperson. We will favor diversity and parity between men and women in our selection. Specific assessment methods including leadership skills or cultural fit could be used in some cases.

 Our areas of expertise cover : Director recruitment, Onboarding and Leadership succession with our team of corporate governance consultants and coaches.