Excellence Enablers Pvt. Ltd || Board Evaluation Services in India

1. Board Evaluation Services in India www.excellenceenablers.com

2. Introduction • Objective of Board Evaluation • Who is to evaluated? • Who is to evaluate? • Topic to be covered • Process of Evaluation • Benefit of Board Evalation • What does Board Evaluation required to succeed • Problems confronting Evaluation in India www.excellenceenablers.com

3. Introduction Board evaluation is the process to assess the functioning of the Boards and Committees towards achieving the desired objectives , remaining within the ambit of the regulations, and working effectively to meet the business strategy. Board Evaluation is mandated in India through regulation. www.excellenceenablers.com

4. The objective of Board Evaluation • To evaluate the boards and its committees as well as individuals directors. • To ascertain whether the composition of the board is the best that it can be. • It is not sufficient if the people being considered are only " good enough ". www.excellenceenablers.com

5. Chairperson of the Board • Board as a whole • Committees of the Board • Who is to be evaluated? • All Directors www.excellenceenablers.com

6. Who is to evaluate? • NRC has to specify the manner in which the evaluation exercise will be carried out either by the Board, by the NRC, or by an independent external agency and review its implementation and compliance. • Board as a whole to be evaluated by the all Directors. • Each Committee of the Board to be evaluated by its chair members. • Chairperson of the Board to be evaluated by the Directors, excluding the Chairperson. • Each Director to be evaluated by all the Directors, excluding himself/herself. www.excellenceenablers.com

7. 01 02 03 04 05 06 07 • PROCESS OF EVALUATION Selecting parameters on which the Board has to be evaluated Setting up evaluation team (internal/external) Implementing the process Establishing objective and scope of evaluation Selecting evaluation methodology Sensitising the Board Following up to recommendation

8. Benefits of Board Evaluation • An effective evaluation process helps to identify the strengths and weaknesses of a Board. • It points to the necessary corrective steps. • Improved Board performance reinforce the efforts of management. • Evaluation helps to identify gaps that need to be filled in the Board functioning. www.excellenceenablers.com

9. What does Board Evaluation required to succeed • It must be an honest exercise, reflecting candour and conviction. • The entire Board should own the process. • It must be seen as a value-adding exercise and not a tick-box exercise. • There will be no gains in effective follow-up does not take place. www.excellenceenablers.com

10. Problems confronting Evaluation in India • Prescriptive legal arrangement has internal inconsistency. • Resistance from Directors "I was invited. Why I be evaluated?" • Cultural dimension - An average director in India is adverse to criticism. • Unstated expectations from Directors - Evaluation can ordinarily be carried out with reference to seated expectations. • Problems in Board functioning - Expressing a frank opinion can cause a problem instead of the affairs of the comapny. www.excellenceenablers.com

11. Contact us for Board Evaluation Services www.excellenceenablers.com