“The board of directors sits at the pinnacle of governance in any organisation. While well-structured agendas and procedures are essential, true board effectiveness hinges on trust, collaboration, and the ability to critically engage with diverse topics and stakeholders. A thorough evaluation process is crucial in identifying strengths and areas for improvement, ensuring boards align with the evolving needs of their business and industry,” according to Caroline Kinsella, Board and Member Services Director, IoD Ireland.
“At the Institute of Directors Ireland, we are committed to supporting boards on their journey to excellence. Our objective board evaluation services are designed to bolster accountability, nurture a culture of continuous improvement, and drive organisational success. It is a privilege to work with boards as they strive to lead effectively and sustainably,” Caroline explains.
Board evaluations often highlight what’s working well, helping to energise the board and strengthen its role. At the same time, they can surface potential challenges or differing perspectives within the board, which then creates an opportunity to address these issues constructively. This process not only enhances board performance but also demonstrates a clear commitment to continuous development.
IoD Ireland member and board evaluation client, Billy Doyle, CEO, Dundalk Credit Union, emphasises the importance of these evaluations in providing valuable insights into board dynamics, structure, performance, and composition. According to Doyle: “Board evaluations allow the board to assess how aligned they are with the strategy and goals of the business, and if they are providing effective oversight on key initiatives or focusing too much on operational issues.”
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He elaborates that these assessments can reveal how board members interact, identify dominant personalities or disengaged members, and assess the board’s alignment with company strategy and goals. Moreover, they can highlight areas where additional expertise might be needed, such as risk management, finance or technology.
Billy Doyle stresses the critical nature of securing buy-in from all directors for the evaluation process to be effective. “Without full engagement and commitment from everyone, the evaluation won’t lead to meaningful change. Full commitment from all directors will foster collective ownership and responsibility and helps to build trust between the board and CEO,” he advises.
For Mike Byrne CDir, Chief Executive Officer of GS1 Ireland and member of the GS1 Global Management Board, the external evaluation was an opportunity to assess company practices against industry standards and improve Board effectiveness. Like Doyle, he raises the importance of active engagement from all parties, stating: “It is very important for the Chair, Board and the CEO to actively engage in the evaluation in order to maximise the benefit of the exercise.”
Tara Glynn, Group Company Secretary & General Counsel at VHI, emphasises that while external evaluations are a requirement for VHI every three years under relevant Corporate Governance codes, they are viewed as much more than a compliance exercise.
“External Board evaluations provide an unbiased perspective on the board’s performance and highlight your strengths and potential areas for improvement. It can provide useful insights into how well the Board works together, and how it works with management,” she explains.
“The evaluation process provides an opportunity to check that the Board is providing leadership within a framework of prudent and effective controls. Additionally, it tests that the Board is a forum for constructive challenge while also supporting the management team. It’s a really worthwhile exercise.”
Independent assessors
The Board Assessor team at IoD Ireland are a key differentiator of the service. The team of Assessors are all practicing directors with diverse backgrounds, bringing real-world experience and understanding of governance across various organisational contexts. This practical expertise enables them to provide insights that are both relevant and actionable.
IoD Ireland’s evaluation methodology assesses both the procedural elements of board operations and the underlying dynamics and culture that shape its effectiveness.
Billy Doyle comments: “The IoD Board Evaluation was exceptionally effective due to the Assessor’s expertise, deep understanding of our context, excellent facilitation skills, and ability to provide clear, actionable feedback for our specific needs.”
Mike Byrne also notes how the evaluation process reflects Board members’ perceptions of their performance and their vision for potential improvements, with the external Assessor facilitating and evaluating these against best practices.
He also speaks highly of the IoD assessors’ competency, describing the evaluation as “professional and comprehensive”. He notes: “The insights and advice received from the IoD Assessors enabled our Board to perform at a higher level and to work more effectively.” He adds that the tailored approach would prompt him to “wholeheartedly recommend IoD Ireland to others without any hesitation”.
Billy Doyle strongly advocates for the objectivity and independence of external evaluators, stating: “This is because they provide an unbiased perspective, free from internal politics or relationships, ensuring fair and credible evaluations.” He believes this impartiality encourages honest feedback and allows for benchmarking against industry best practices.
In Tara Glynn’s view, having an Assessor with board experience ensured that a practical approach was adopted and ensured that there was a focus on strategic rather than operational issues. “Our most recent assessor was thorough but practical,” she adds.
Tangible benefits and outcomes
The evaluation process yielded significant benefits for GS1, according to Gerry Boylan, Chairperson of GS1 Ireland. “Specifically, the assessment has allowed the board to operate within a framework of best practice that has ultimately led to better board meetings and better decision making at a board level.
“Having adopted all the recommendations from the Board evaluation, the Board’s energy and time could be directed towards the maximum impact of GS1’s standards, services and solutions in the markets we serve, underpinned and supported by a robust governance process.”
Following the Board assessment at Dundalk Credit Union, Billy Doyle notes important changes in board practices, including a greater focus on culture, technology, risk, and ESG considerations.
From evaluation to action
VHI’s Tara Glynn highlights the importance of openness to change for the evaluation process to be effective. “The process will only be effective and worthwhile if the Chair and the Board are willing to embrace the findings,” she says. “If there is no willingness to embrace change then there will be no improvement. In my view, it is critical that the Chair and Board directors are receptive to new ideas and recommendations.”
For boards considering their first external evaluation, Billy Doyle advises: “Approach the evaluation with openness and a commitment to candid feedback, as it will highlight both strengths and areas for improvement. Ensure that the entire board is aligned on the importance of the process and prepared to act on the recommendations for meaningful governance enhancement.”
Following the external board evaluation, IoD Ireland provides feedback and support, including a presentation of the report to the board and assistance in developing an action plan for implementing accepted recommendations.
Caroline Kinsella, Board and Member Services Director at IoD Ireland, emphasises the importance of this service. “We consider the provision of an objective board evaluation service to be a key dimension of our work. Leveraging our Continuing Professional Development Framework, we conduct supportive, informative, and objective evaluations,” she explains.
The evaluation is not seen as a one-off exercise, but rather as part of an ongoing journey of board development. This is reflected in their follow-up support, which includes guidance on implementing recommendations and suggestions for regular review of progress. “Our evaluation method bolsters board accountability, nurtures a culture of ongoing improvement, and propels organisational success,” Caroline adds.
To find out more visit the IoD Ireland’s Board Evaluation Service website
