Is your board a high-performance team?

• Author: Muschewske, Robert C.

One approach to evaluating boards and their members is measuring them against team performance standards.

When you hear the word "team," a board of directors probably isn't the first image that comes to mind. But an effective board needs to work as a team. Some might even say that a board should be the ultimate high-performance team, setting the example for teamwork throughout the entire organization.

What makes a high-performance team? And how can you determine if your board is one?

A high-performance team needs a clear purpose, team members with the right skill sets, and the power to make decisions and act on them. Finding out how your board stacks up against these standards is easier than you might expect.

If you're wrestling with the question of how to evaluate board performance, you're not alone. Many boards are responding to the increased scrutiny of their activities by adopting a formal evaluation process. They're also undertaking the highly charged process of evaluating each other - weighing one another's individual contributions and, yes, even making uncomfortable judgments about their peers' performance. The sensitivities are enormous, and there's a lot at stake.

But the process itself doesn't need to be difficult or time-consuming. Boards that are grappling with this issue will find that the task is manageable if they break it into three distinct steps:

* Defining success criteria for overall board evaluation, as well as criteria for individual director evaluation.

* Using a simple evaluation instrument and process.

* Acting on the results.

Defining success criteria

A board needs to begin by defining what it views as the critical factors for creating shareholder value. While each board may choose to define its criteria slightly differently, research on effective, high-performance teams suggests the criteria generally fall into six categories: clarity of purpose, capabilities, practices, participation, commitment, and power. A description of each follows.

Clarity of Purpose: The board understands its purpose, legal and fiduciary responsibilities, the needs and expectations of shareholders, and the difference between its accountabilities and those of management. It understands the enterprise's vision and strategic objectives, and establishes clear performance objectives for the enterprise, the CEO, and itself.

Capabilities: The board possesses the right skill set, required resources, and organizational structure to succeed; has the...