A good board is forward-looking and
generates added value for the organization
A good board of directors sets a business up for success. It must be capable, independent and efficient. Its members must all have mutually complementary backgrounds and skills that generate added value for the business.
We help our clients to build and develop capable and effective boards of directors through board evaluation and development measures and non-executive director searches.
Evaluation of Company Boards
A professional evaluation of a company board can substantially enhance its efficiency. We have developed a three-stage process for evaluating the efficiency and strategic effectiveness of the board of directors in the operations of a company. The goal is a capable and efficient board of directors that is forward-looking and generates added value for the organisation.
The evaluation process for a board of directors generally includes the following stages:
- Interviews with the Chairman and members, and usually also with the CEO. We often also interview the major owners of a company.
- An online survey of the directors. The interview findings help us to tailor this online survey of the work of the board to the specific circumstances of the company. This survey will typically include the following subject headings:
- corporate strategy and risks
- the board´s engagement with the business
- composition and structure of the board
- working processes of the board
- boardroom dynamics
- work of the Chairman.
In-depth interviews may be held instead of the online survey.
- Observations and recommendations. The goal of the observations and recommendations is to improve the strategic effectiveness and efficiency of the board in its work. The report and recommendations will generally be addressed to the Chairman of the board or to its nomination committee.
We also often assess the work of the CEO when evaluating a board of directors. This enables both the board of directors and the CEO to evaluate the work of the CEO. A CEO assessment is typically conducted under the following headings:
- the overall situation and direction of the company
- development and implementation of strategy
- risk management
- communication and co-operation.
Non-Executive Director Search
Appointing members of the board of directors is an important decision for a company. We work with our clients to enable them to appoint a board of directors with a diverse composition of expertise and experience that meets the strategic needs of the company.
The role of nomination committees of the boards and the role nomination boards of the shareholders have increasingly become one of evaluating the composition and skills requirements of the board and profiling new directors, while the actual process of searching appointees is often outsourced to an executive search specialist.
Increased corporate governance requirements and the more active role of shareholders have emphasized the importance of a professional, objectively managed searching and evaluation process for company directors.
- We recruit non-executive directors for listed companies, businesses acquired by private equity investors, and family businesses.
- We are fully familiar with the Finnish market, with an extensive network of contacts and in-depth knowledge of the potential non-executive directors.
- We also review the most capable potential for boardroom work with no previous experience in the capacity of non-executive director, because only a limited number of CEOs and other senior executives have been involved in the board work. We seek to assist in assembling a board of directors that represents a wide range of skills and backgrounds.
- Our international non-executive director searches are conducted in close partnership with IMD International Search Group, which operates at over 40 locations in more than 25 countries.
A Non-Executive Director Search Includes The Following Stages:
- Determining the candidate profile and preparing the research strategy
- The research stage and contacting of candidates
- Interviewing, testing and evaluation of candidates
- Presenting the shortlist
- Interviews by the client
- Checking references
- Candidate selection and presentation to the shareholders’ meeting