Strategic failure
Control failure
Ethical failure
Interpersonal relationship failure
Further, board carries out self-evaluation due to increasing demand for corporate performance, rise in shareholders
activism, and increasing media and community scrutiny of aspects of corporate life.
Objectives and Scope of Self Evaluation
To establish what it hopes to achieve (corporate leadership or problem resolution), and scope of review (availability
of sufficient resources)
To be included in Self-Evaluation:
1.
2.
Internal Evaluations (Board as a whole (board committees), individual directors, and key governance
personnel (CEO and Corporate/company secretary)
External Evaluations (Shareholders, Government, Customers/Suppliers, Other stakeholders)
Areas to be evaluated:
To be problem specific, identify root causes of problems, tests the practicality of specific governance solutions.
Governance roles (roles and responsibility), Improving board processes, Key board functions, Continuing
improvement, Relationships, Accomplishments, goals and objectives, mission, policies, confidence, performance,
productivity, stability vs change.
Techniques to be used:
1.
Qualitative Techniques
Interviews (Group or individual), Observations, Document analysis
2.
Quantitative Techniques
Surveys (face to face, telephone, mail, email, internet)
Topic
Criteria Items
Board meetings
Does documentation done by board cover the correct amount and type of
information?
Are board members conscientious in preparing for meetings?
Are company related materials discussed and reviewed in a structured manner?
Does the mission, vision, and strategies are well understood and clearly defined?
Is the board have knowledge about emerging trends, issues, and changing patterns
of market in which the company performs?
SARFRAZ ALI SHAHANI
CORPORATE GOVERNANCE
Is there any mechanism and policies that could encourage board members to pursue
opportunities for personal development?
Do the board members carry out succession planning for chairperson, and for its
member effectively?
Do the board guidelines include well defined and understood policies and
procedures to select and induct members?
Reference:
1.
2.
3.