Board Evaluation in Kenya

Board Evaluation in Kenya

What Is a Board Evaluation?

Board evaluation is the process of assessing the performance, structure, and dynamics of a board and its committees. It examines how well directors understand their roles, how decisions are made, and whether the board is aligned with the organization’s strategic goals.

According to governance experts, board evaluation is a measure of the board’s effectiveness and a tool to ensure the board’s functioning contributes to the success of the organization is not a fault-finding mission but rather an opportunity to strengthen performance and effectiveness.

Why Board Evaluation Is Important

1. Improves decision-making
   The main purpose of board evaluation is to enhance the quality of decision-making at board level. When board members understand their roles clearly and collaborate effectively, better strategic decisions are made.

2. Checks board dynamics
   The culture and dynamics of the boardroom are just as important as technical expertise. Evaluations help uncover whether directors contribute constructively or whether poor judgment and apathy are creeping in. As one governance scholar put it, “The performance of any board is a function of the character of the individuals that comprise it. No structural remedy can overcome poor judgement or apathy”.

3. Encourages accountability and transparency
   Evaluation demonstrates to shareholders, donors, regulators, and the public that the board is committed to accountability and continuous improvement.

4. Supports succession planning
   By identifying gaps in skills and competencies, board evaluations inform recruitment of new directors and leadership succession plans.

5. Strengthens governance in nonprofits
   Organizations emphasize board evaluations as a way to benchmark against industry peers, assess decision-making processes, and capture board. This ensures nonprofit boards are as professional and accountable as corporate ones.

What Does Board Evaluation Cover?

A comprehensive board evaluation framework usually looks at:

• Roles and Responsibilities: Are directors fulfilling their duties effectively? Are they contributing to achieving the organization’s objectives?

• Structures and Procedures: Does the board follow best practices in its committees, policies, and decision-making processes?

• Board Behavior and Culture: How do the attitudes, skills, and interactions of directors affect decision-making?

• Individual Director Performance: Evaluating the chairperson, CEO, company secretary, and individual directors ensures accountability across all leadership levels.

How Is Board Evaluation Conducted?

Different techniques can be used, depending on the context:

• Questionnaires and Surveys: Easy to prepare and analyze, these provide useful data but may miss behavioral insights.

• Individual Interviews: Allow for deeper exploration of the director’s views but depend on honesty and confidentiality.

• Internal vs External Evaluations: Internal evaluations are cost-effective but may lack objectivity. External evaluations bring independence, comparative insights, and credibility.

Best practice combines several approaches for a more rounded perspective.

Turning Results into Action

A board evaluation is only useful if its results are acted upon. A well-executed process includes:

1. Preparing a detailed report.

2. Providing individual feedback to directors.

3. Discussing findings openly at the board level.

4. Agreeing on an action plan.

5. Reviewing progress periodically and re-evaluating annually.

When taken seriously, evaluations lead to better strategic focus, improved efficiency, and stronger governance practices.

Key Elements of an Effective Board Evaluation

For the process to succeed, several factors are crucial:

• Director Buy-In: The board must see evaluation as a tool for growth, not criticism.

• Tailored Approach: The evaluation should reflect the organization’s unique needs and context.

• Clear Objectives: Boards must define what they want to achieve from the process.

• Open Discussion and Action Planning: Results should lead to tangible governance improvement

Board evaluation is more than a compliance exercise. It is a strategic tool for building stronger boards that can guide organizations, whether companies, nonprofits, or trusts, towards long-term success.

For organizations in Kenya and beyond, embracing regular and well-structured board evaluations ensures accountability, strengthens leadership, and ultimately improves impact.

A Board Evaluation is part of the Organization’s Corporate Governance Framework which we can help you develop.

Download a sample questionnaire for a board evaluation exercise. Board Evaluation – Self Assessment Sample Questionnaire surveymonkey com