BOARD EVALUATIONS NECESSARY FOR SUCCESSFUL GOVERNANCE ● May 2024

At the World Conference on Club Management, representatives from The Club Council shared the importance of conducting annual board evaluations to help increase board effectiveness. The consulting firm made up of industry veterans explained a board of directors should be a strategic asset that adds value to the club. Board members must model the behaviors they expect of the GM/staff and engage in self-evaluation.

“Great governance and great leaders are necessary for a successful club, and feedback makes both better,” said Kirk Reese, a partner with the firm. “However, evaluations often get left out of the board conversation.” To implement these board reviews, start with a conversation between the club president or governance committee chair and the GM/COO. Talk about the past processes (if there are any) and why this is an important tool to help the board better govern. Ask for input on what would make the board evaluations most helpful and reiterate that feedback is required for improvement in all jobs.

The Club Council urged managers to engage their board by asking the question: Are there things we’ve said we are going to do as a board that we aren’t doing? “We have to be truthful and open about the things we have done and haven’t done, and we have to be willing to accept some criticism as part of the process,” Reese explained.

Effective board performance evaluations add value by focusing the attention of the board on its fiduciary responsibilities and its accountabilities. The best assessments are characterized by trust and individual director anonymity.

The process must include meaningful participation by all members of the board, the general manager and possibly other staff leaders. The Club Council looks for the following in a board performance review:

? Whether fiduciary responsibilities are carried out.

? The adequacy of board logistics and processes.

? How well directors work together and constructively challenge each other.

? The board’s ability to accept accountability and to speak as one.

? Whether the board focuses on the right issues.

? Whether the GM/COO receives value from the board.

The Club Council looks for the following in individual director performance:

? Understanding the board’s responsibilities and individual director responsibilities.

? Understanding the difference between the role of the board and the role of the GM/COO.

? Understanding the club business model and industry trends.

? Meeting attendance, participation and the degree of preparation. (Does everyone give their best?)

? Ability to work with the GM/COO, fellow board members and others.

Stay tuned as the next issue of the PCA will include a follow-up article on board evaluations addressing who should be included in board evaluations and cautions to consider during the process.