Enhancing Board Excellence and Effectiveness: The Power of Board Evaluations for Kenyan Companies

A 2022 survey of 153 Kenyan state-owned enterprises found that high-quality board practices accounted for approximately 62% of the variance in their organizational performance. This statistic stresses the influence boards have on strategic success. For private, public, and listed companies in Kenya, conducting structured board evaluations is not a luxury, it’s a strategic imperative.

What Is Board Effectiveness?

Board effectiveness means how well a board:

• Defines and drives the strategic direction

• Oversees risk, governance, and legal compliance

• Ensures strong ethical standards

• Supports management without micromanaging

Boards that self-assess and improve outperform those that do not

What Is a Board Evaluation?

A board evaluation is a systematic review assessing how well a board performs its duties. The process typically includes:

1. Self-Assessments: Directors complete structured questionnaires covering areas like strategy, risk oversight, boardroom dynamics, communication, and decision-making. External Assessments: Independent experts conduct interviews, observe meetings, and evaluate board structures to offer unbiased insights.

2. Board Observation: An impartial observer attends board meetings to assess engagement, balance, and effectiveness in real time.

3. Peer Reviews: Directors evaluate each other’s contributions and collaboration to foster accountability.

4. KPIs & Metrics: Performance indicators, like attendance, meeting effectiveness, action follow-up, and oversight efficiency, provide quantifiable insights.

Why Kenyan Boards Must Evaluate Themselves

Conducting regular board evaluations provides significant advantages at the organizational, board, and individual director levels:

1. Stronger Governance & Decision-Making
   Evaluation processes enhance board efficiency, enabling more focused agendas, structured discussions, and timely decisions. They bring clarity to roles, eliminate micromanagement or oversight lapses, and foster more strategic impactful leadership.

2. Enhanced Accountability & Transparency
   Evaluations create a culture of personal and collective accountability. Directors are held to well-defined performance standards, with visible follow-through on action plans. This openness builds stakeholder trust and signals responsible leadership.

3. Improved Board Dynamics & Culture
   Through candid feedback, boards remedy communication breakdowns, reduce conflicts, and promote a psychologically safe atmosphere. This leads to better teamwork, more productive debates, and higher engagement in governance activities.

4. Strategic Alignment & Risk Oversight
   Evaluations help realign board priorities with a long-term strategy, ensuring sufficient time is allocated to growth, risk, and innovation, not just operational or transactional matters.

5. Skills Development & Succession Planning
   Boards gain insight into competencies and gaps, guiding professional development and informing succession plans. This ensures future directors are well-equipped to lead.

6. Investor Confidence & Market Credibility
   Independent assessments show investors and regulators that governance is taken seriously. An externally verified evaluation boosts reputation and aligns with regulatory expectations for transparency.

A Step-by-Step Guide to Conducting a Board Evaluation

1. Define Objectives - Work with the board/company secretary to choose areas like strategic alignment, risk governance, or stakeholder communication.

2. Select Tools - Use standardized evaluation frameworks from IoD Kenya, CCG, or ICGK.

3. Apply Mixed Evaluation - Conduct annual self-assessments and periodic external reviews.

4. Observe Meetings - Invite facilitators to assess live boardroom dynamics.

5. Review & Analyze - Consolidate results, identify priorities and set improvement goals.

6. Update Governance Documents - Consolidate results, identify priorities, and set improvement goals.

7. Monitor & Repeat - Use KPIs to track progress and schedule evaluations annually.

Role of the Company Secretary

The company secretary plays a pivotal role in board evaluations:

• Advisor & Facilitator: Works with the board to select objectives, customize tools, and ensure confidentiality.

• Coordinator & Analyst: Manages logistics, collects and analyzes feedback, and drafts comprehensive reporting.

• Implementation Tracker: Ensures evaluation outcomes are actioned and integrated into board charters and meeting procedures.

• Continuous Supporter: Schedules follow-ups, training sessions, and board refreshers based on the evaluation results.

Ready to Elevate Your Board?

An effective board fuels organizational success and stakeholder trust. Azali Certified Public Secretaries LLP offers bespoke board evaluation services, from self-assessment packs to full external reviews, aligned with Kenyan frameworks and governance best practices.

Contact Us Today
Email: admin@azali.co.ke

Phone: +254 (0) 707 456 140