Many organizations view board member peer reviews as one of the most relevant ways to gauge effectiveness and to work to change any negative behaviors occurring in the boardroom.
Peer reviews can, however, be very tricky evaluations to administer since they carry a strong element of critique. While yearly board evaluations are required for all NYSE-listed companies, peer reviews are not mandatory.
Before choosing to implement peer reviews, board members should discuss the potential value that they would bring to their processes. Then, the chairman can make the decision to implement peer reviews as needed.
If your board does feel that peer reviews will provide significant boardroom insight, here are four suggestions for how to go about administering and utilizing them.