Volume 2 Issue 7 - 2009
HR in the Boardroom | Boards Focus on their CEOs | Paying the Family | Increasing Board Effectiveness 

Increasing Board Effectiveness

Aon Consulting Launches a Web-Enabled Board Evaluation Solution

In most companies, managers at virtually all levels evaluate the performance of their teams and the individual employees reporting to them. But who appraises the boards and the directors who govern our companies? Why is it important? How can we help more boards to adopt a performance improvement mindset?

It is not always an easy process

Though it is crucial to determine the board’s and individual director’s effectiveness, it is not always an easy process. When conducting board and director evaluation, organizations face challenges, which include lack of expertise and resources, fear of creating animosity among board members and reluctance to accept change. Chairmen of boards have to deal with such issues as:

• How effectively has my board fulfilled its duties in corporate governance?
• How should we assess the performance of the board and its individual directors?
• What criteria should define an effective board and an effective director?
• Who should conduct the evaluation?
• What resources and expertise are required to perform an evaluation?
• How do we manage confidentiality issues that may hinder the evaluation process?
• How do we best utilize the results of a board evaluation to initiate action plans for improvement?

As demands and expectations of boards increase and performance improvement becomes a priority, it is difficult to avoid dealing with these hard issues. A board adopting a performance improvement mindset will definitely have a positive influence on the overall company’s performance. Improving performance starts at the top-end of the house.

More effective, efficient and meaningful board evaluation

Aon Consulting has developed a web-enabled tool – Board Evaluation eSurvey^TM – to fulfill this need. Board Evaluation eSurvey^TM is based on Aon’s extensive experience consulting with many boards. It is the result of a combined team effort from our Human Capital Consulting Practice, Global IT Development Center, and Global Research Center.

Board Evaluation eSurvey^TM adopts a multi-source feedback approach similar to how a company would manage the performance feedback process for its key talent. The tool provides: 

• A basis to prioritize and clarify the board’s strategic focus and goals.
• An outline of the desired standards of performance for the board.
• A feedback channel for independent directors for boards dominated by majority shareholders.
• Assessment of the board’s own competence and accomplishment, and a roadmap to further improve group dynamics, and board-management relationships.
• A chance to reflect on and assess individual director’s strengths and weaknesses, and how to better utilize individual directors.
• A basis to track evaluation trends and provide “red-flags” for follow up and improvement.

At Aon Consulting, we believe that conducting a board evaluation on a regular basis is instrumental in delivering governance excellence. Moreover, it sets a good example for management and employees.

Contact us for more information

For more information about how Aon Consulting can assist you in initiating and conducting effective board and directors evaluation, please contact Alan Pang at alan_pang@aon-asia.com. To learn more about Board Evaluation eSurvey^TM visit www.aon.com/bdeval or download a brief description of the service by clicking here.