Board analysis is an examination of the organization, structure and composition of a board. Its goal is to determine whether the board has a balance of expertise, experience, and impartiality from inside and outside to advise and monitor the management on strategy and direction. It also seeks to determine whether a board works as a unit and if it is assisting the CEO effectively and guiding the company’s growth.

The best boards have an environment of openness, trust and cooperation. They have a good understanding of the business’s ecosystem and they ask management critical questions. They are focused on the long-term health of the business and are able of identifying risk and opportunities. They work with stakeholders so that the board can understand their own interests, seek changes in corporate behaviour and make a positive contribution.

According to McKinsey’s 2021 global study of more than 800 directors, the most effective boards consist of non-executive directors (NEDs) with experience and executives with an in-depth understanding of the company. They have a set of rules and a framework that guide their decisions and they are focused on increasing the effectiveness of the board.

A board evaluation is a valuable instrument to help a board evaluate its performance as well as provide feedback to the CEO and Chair. However, not all boards have made this a priority. Through conducting an objective, third-party evaluation, board members can become more aware of potential pitfalls.