Board analysis is the study of a board’s composition, structure, and operations. Its aim is to determine whether the board has a mix of expertise, experience, and objectivity from within and outside to oversee and advise the management and develop strategy. It also seeks to assess how a board works as a team and whether it is supporting the CEO effectively and assisting in the growth of the business.

The most effective boards are defined by a culture of trust, openness, and collaboration. They are well versed in the business’s ecosystem and can challenge management with difficult questions. They are focused on the long-term health of the company and can spot risks and opportunities. They collaborate with the stakeholders to ensure that the board is aware of their vested interest, and are able to pursue changes in corporate behavior and have an impact.

According to McKinsey’s 2021 global survey of more than 800 executives and directors, the best boards include an experienced mix of non-executives (NEDs) and executives with deep understanding of the business. They have a set-of-policies and a structure to guide their decisions and are focused on improving effectiveness of the board.

A board evaluation is an important tool to help a board evaluate its performance and give feedback to the CEO and Chair. However it is not the case that all boards have made it a priority. By conducting an objective third-party review board members will become more aware of potential dangers.