Board and director selection and appraisal

An efficient appraisal system is one of the key areas where board effectiveness can be improved. Developing an effective board depends on a process of appraisal linked to a process of continual development. This enables directors' performance to be monitored and improvements made.

There are many benefits to a company, and to its board, of a regular review. They help to clarify the individual and collective roles and responsibilities of directors; raise awareness of any current or future skills gaps with a view to filling them; improve working relations between the board and managers encouraging greater candour between directors' and senior managers (they also show that the board is leading by example), and finally they help keep the board focused on improving its effectiveness.

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