The LGA 360° Board Assessment tool is designed to promote the effectiveness of individual Directors on Boards of family held companies.
Companies usually have good systems for evaluating the performance and abilities of top executives and many have developmental programs designed to maximize these executives’ professional growth. Family businesses, however, do not typically apply this same rigor to the assessment and development of their Board Directors, despite the fact that these individuals have an equally critical role to play in the success of the company.
This program provides a means for companies to obtain and provide feedback on the contributions and competencies of their individual Board Directors. The program uses a 360 assessment survey to gather feedback from the different stakeholder groups for each Director. The feedback data is discussed directly with the Director so they are able to set a plan for increasing their effectiveness on the Board. The summary data is also available to the Board Chair, or to a designated committee responsible for the development of Board Members.
We encourage the Chair, or the designated Committee of the Board, to select the appropriate stakeholder groups and members of each group to participate in the rating process. Using an online assessment tool, the raters are invited to provide feedback for each of the selected Directors. In addition, the Directors rate themselves on the competencies.
Directors receive their detailed feedback report in a confidential session with a consultant from our group. The Directors then have an opportunity to meet with the Chair or the designated Committee to discuss the summary and ways to increase the Director’s contributions. The consultant is also available to join this meeting.
This is one of several analytical visualizations based on a sample competency profile for a fictional family Board member.
The assessment tool asks for feedback on the twelve core competencies (e.g. Business Knowledge, Financial Acumen, Strategic Thinking, Decision Making, Integrity, Family Business Stewardship, etc.). These competencies were selected based on our research and experience of abilities and skills needed by both Family and Independent Board Directors. The data is gathered from a total of 60 rated items, followed by three open-ended questions related to the person’s perceived impact and development.
The confidential survey is administrated online using a secure website and provides ratings and feedback from multiple stakeholder groups (as determined by the specific needs of the Board): Family Directors, Independent Directors, Family and Non-Family Member Executives, Advisors, Family Shareholders, and/or other stakeholder groups.