Recommendations Evaluation BoD and EM

Competency-based and team-oriented boards bring more competitiveness and sustainable value creation


Written by Sandro V. Gianella, Managing Partner Knight Gianella and Dr. Fabienne E. Meier, Partner Knight Gianella, in June 2021


When Boards of Directors and Executive Managements evolve from boards to teams, they are—without a doubt—better able to cope with the current paradigm shift. An evaluation is a match-making tool to create a shared understanding of goals and working together. The individual leaders can then better contribute to the team and positively shape the team’s reputation externally and internally.


Although 86% of the Board of Directors evaluate their own board, the evaluation criteria are often not systematic enough and thus not meaningful enough to assess the team dynamics. This is why the top management boards should apply a process in which the critical evaluation criteria are systematized and customized to future strategic and management-specific corporate challenges.


Basis for recommendations

The resulting analysis and recommendations are based on the Knight Gianella BoD Survey (from 2019) in collaboration with the IMD International Institute for Management Development. The 214 participants represent 647 companies in Switzerland with their exercised BoD mandates. With a very high response rate of over 34% of the 626 Board Members contacted and an identical proportion of women of 24% among those contacted and those responding, the results can be considered representative.


The recommendations were also verified with Knight Gianella’s deep expertise in corporate supervision and governance. Between September 2020 and April 2021, more than 50 individual meetings were held with BoDs and CEOs from listed and large non-listed companies in Switzerland to further refine the recommendations. This allowed Knight Gianella to incorporate all of the critical lessons learned from the first, second, and third waves of the COVID-19 crisis into the recommendations.


Current challenges

The current socio-political dynamics pose a massive challenge to the top management boards. On the one hand, the COVID-19 crisis has redefined the game rules in most sectors and industries, driving digitization and highlighting the gaps already present in systems and organizations alike. On the other hand, new topics such as diversity and ESG (Environmental Social Governance or sustainability)—to name just a few—are high on the agenda of Boards of Directors and Executive Management. As a result, boards are having to transform themselves.


Boards of Directors and Executive Management are facing a cultural and structural paradigm shift. The days of classic forms of leadership and collaboration are over. External stakeholders and the own organization are increasingly demanding mixed boards that examine new topics from different perspectives and operate with value-based leadership and team-oriented collaboration. The composition, dynamics, and cooperation of the top management boards must adapt to the new rules of the game to be competitive in the long term and to be able to generate sustainable value creation.


Show the cards?

In 2019, the Knight Gianella BoD Survey showed that the top management board must position itself optimally as a team and align culturally and structurally with the new framework conditions. But, unfortunately, the reality is that 14% of companies still do not carry out any evaluation or—in other words—that these boards do not like to show their cards.



Of the 86% that carry out an evaluation, 66% do so without external support. 62% carry out the evaluation annually, with the majority evaluating the Board of Directors as a whole and each member individually (see figure). This means that most boards evaluate themselves without looking beyond their horizons. This is dangerous because it prevents exchange and, consequently, competitiveness and sustainable value creation.  


It is evident that the BoD evaluation criteria are pragmatic but not yet systematic enough (see figure). The honest answers to this question suggest that no standard has yet emerged regarding the evaluation criteria. Otherwise, the respondents would mention individual categories by more than 36%. This shows the limits of the currently applied evaluation methodology. However, systematically conducted evaluations are an essential lever for objectively assessing the committees and increasing their impact. A common understanding can significantly increase the team’s perception externally (external stakeholders) and internally (own organization).



Boards of Directors and Executive Management find it challenging to show their cards. On the one hand, the leaders on the top boards have proven themselves and can usually look back on many years of experience. This experience is undisputed, but it is often no longer sufficient. Besides, it is precisely these boards that are increasingly demanding full transparency from their organization. If these seasoned personalities do not allow themselves to be evaluated, there is a danger that they will no longer be seen as role models and thus lose their positive influence. It is crucial to stay on the ball, engage in constructive dialog, learn from it, and continuously improve—even “at the top.”


On the other hand, these boards often discuss sensitive topics that should first be addressed internally and not (or not yet) externally. That is why trustworthy partners must support these boards. Selected executive search partners such as Knight Gianella have the relevant expertise, credibility, and trustworthy access to Boards of Directors and Executive Management to accompany them in this sensitive and discreet task. It is about seizing the opportunities and not being afraid to show the cards.


Benefits: A shared understanding of goals and collaboration

Two dimensions are central to an evaluation: competency-based composition and team-based dynamics and collaboration.


The evaluation of the competency-based BoD and EM composition defines the requirements for optimally mastering the strategic, management-specific, and entrepreneurial challenges. Both the individual board members’ profiles and their responsibilities, tasks, roles, and the required competencies in the entire board are determined and compared. A systematic approach is used to identify the levers of influence to optimize them transparently for all those involved, close the gaps in a targeted manner, and build long-term succession plans.


The team-oriented evaluation of the BoD and EM dynamics and cooperation reveals the impact of the individual leaders. In addition to the type of collaboration, it also identifies motivation, any taboo topics, and focal points on the agenda or work processes. Options for their optimization are suggested. This raises the chances of increased effectiveness—the quality of the interaction process and satisfaction within the team improve. In turn, each leader is positioned as a value-based role model. This has a match-deciding influence on the perception and reputation of the entire board.


Competency-based teams need a shared understanding of goals and collaboration. This seems trivial. However, reality shows that this is often not the case. A team inevitably has leaders who have a different view of things. If there is no common understanding, it is precisely these people who think differently and leave the board. This can lead to a certain persistence in thinking in the same mindset and rather despondent decision-making. This puts competitiveness and sustainable value creation at risk.


An evaluation can achieve the following optimizations:

  • Strategic fit: The board’s competencies are more aligned with the company’s strategic challenges so that the company is fit for the future.

  • Gap analysis individuals and boards: Individuals are part of the team and must make optimal contributions. The gaps should be closed so that the team can function perfectly as a whole.

  • HR agenda / succession planning: Succession can be built by making the strategic challenges transparent and building new long-term competencies.

  • Gender diversity / talent management: A systematic approach creates the framework for attracting, developing, and retaining top female executives.

  • Shared understanding: The fact-based assessment creates an agreed-upon framework about the team’s goals, composition, and collaboration. This makes it an effective tool for discussions and optimization.

  • Positive perception: Shared understanding increases the perception and reputation of the team externally (external stakeholders) and internally (own organization).


Options: External evaluation as a basis for self-evaluation

There are various options for evaluations (see figure). The choice depends on how much insight the board wants to grant a neutral partner, i.e. the depth and trust of the access.



Four typical options are:


External evaluation: In external evaluation, an independent and trustworthy partner evaluates the board. This includes a close look at competence profiles, composition, diversity, dynamics, motivation, collaboration, agenda, processes, and taboos.       Duration: 3 to 4 months. Execution: every 3 years.


Self-evaluation: The board evaluates itself, and an independent and trustworthy partner accompanies the process. Knight Gianella uses a systematic process that ensures comparability with other boards without violating confidentiality. At the same time, essential criteria defined in the strategy are customized and reflected in the evaluation. Duration: on a fixed date. Execution: annually.


Interaction evaluation: In addition to the external evaluation, an independent and trustworthy partner evaluates the board by participating and observing the interaction in the meetings. Findings are verified and formulated into measurable criteria. Execution: integral on a fixed date.


Sparring evaluation: An independent and trustworthy partner evaluates the board members as value-based team role models. The focus is on identifying blind spots, strengthening the team spirit, and developing potential. The sparring takes place on a professional, leadership, and personal level. The effect is made transparent to allow for continuous improvement. Execution: situational as needed.


The external evaluation, which takes place every 3 years, is the basis for an optimal annual self-evaluation. For this, Knight Gianella provides an annual cloud-based questionnaire tailored to the company. This questionnaire maps the critical systematic evaluation criteria and aligns them with the specific strategies and challenges of the company. Although external evaluation is still a taboo subject in many companies, a systematic approach would help obtain a neutral view of the team’s impact and thus improve the team dynamics.



Opportunity: Systematic evaluation leverages the strengths of the team

Evaluation is the key to design composition, dynamics, and collaboration. An external (systematic and customized) evaluation is useful if …


… the succession process is to be restarted, jointly discussed, and validated at BoD and / or EM level;

… a new Chairman / Chairwoman wants to get to know the Board Members better;

… a new CEO wants to know the key members in his/her management team better;

… the dynamics and cooperation of an existing team are to be improved;

… effective framework conditions for implementation are to be ensured following the strategy process;

… a company is acquired, integrated, or outsourced to reposition the boards;

… the effectiveness and efficiency of the BoD and EM team are to be ensured in preparation for an IPO or if the management team is to be reconstituted or supplemented.


Conclusion: The evaluation of BoD and EM is the basis for a board to become a team, to have a common understanding of goals and cooperation to best master future strategic, management-specific, and entrepreneurial challenges. Competency-based and team-oriented boards bring more competitiveness and sustainable value creation. Boards of Directors and Executive Management should seize the opportunities and not be afraid to show their cards. Trustworthy partners with a systematic approach can accompany them optimally and sustainably without violating confidentiality.