Board appraisals

Today I was talking to a Chair of Trustees about board appraisals as the board is reticent, as many boards are, whether this is a perceived slight to their integrity, capability or effectiveness, or a fear of exposure to shortcomings.

Conducting trustee appraisals is good practice but not obligatory. I have introduced appraisals for all of the charities I have chaired and recommended them in my governance reviews of others. I have found that after initial reluctance, the board actually found them enjoyable. The trick is finding the right approach and selling it to the board, so they do not take it as a personal challenge.

Conducting charity trustee appraisals offers several benefits that can significantly enhance the effectiveness and governance of a charity. Here are some key advantages:

1. Improved Governance:
- Enhanced Accountability: Regular appraisals hold trustees accountable for their performance and responsibilities, ensuring they are fulfilling their duties effectively.
- Transparency: Appraisals foster a culture of transparency, making it clear how decisions are made and how trustees contribute to the charity's success.

2. Trustee Development:
- Identifying Training Needs: Appraisals can highlight areas where trustees may need additional training or support, helping them to develop their skills and knowledge.
- Personal Growth: Trustees can gain valuable feedback that contributes to their personal and professional development.

3. Performance Improvement:
- Role Clarity: Appraisals help clarify the roles and expectations of trustees, ensuring everyone understands their specific responsibilities and how they contribute to the charity’s goals.
- Enhanced Effectiveness: By regularly evaluating performance, charities can ensure that trustees are working effectively and efficiently.

4. Strategic Alignment:
- Alignment with Objectives: Appraisals help ensure that trustees are aligned with the charity’s mission, vision, and strategic objectives, promoting cohesive and focused leadership.
- Goal Setting: They provide an opportunity to set and review individual and collective goals, aligning trustee activities with the charity’s strategic priorities.

5. Risk Management:
- Identifying Weaknesses: Regular evaluations can identify weaknesses or gaps in governance, allowing the charity to address potential risks proactively.
- Compliance: Appraisals help ensure that trustees are aware of and compliant with legal and regulatory requirements, reducing the risk of governance failures.

6. Board Dynamics and Teamwork:
- Improved Communication: Appraisals encourage open and constructive communication among trustees, fostering better teamwork and collaboration.
- Conflict Resolution: They provide a structured process to address and resolve conflicts or issues within the board, promoting a harmonious working environment.

7. Enhanced Reputation:
-Building Trust: Regular appraisals can demonstrate a commitment to good governance and enhance the charity’s reputation, building trust with stakeholders, donors, and beneficiaries.
- Attracting Tale: A well-governed charity is more likely to attract high-quality trustees and staff who are committed to the charity’s mission and values.

8. Continuous Improvement:
- Feedback Loop: Appraisals create a feedback loop that drives continuous improvement in governance practices and trustee performance.
- Adaptability: They enable the charity to adapt to changing circumstances and challenges by regularly reviewing and updating governance practices.

Trustee appraisals are vital tools for maintaining high standards of governance, promoting trustee development, and ensuring the charity operates effectively and efficiently to achieve its mission.

I would be interested to hear about your experiences with the board-led appraisals and which you think is the most effective method (peer-led, one-to-one, 360, or the written, chair-led self-assessment).