A new ICSA survey has revealed that only 16 per cent of companies in the FTSE 200 undertake an externally-developed or managed evaluation process.

The 2008 edition of ICSA’s annual board performance evaluation survey, to be published next week, has revealed that only 32 of the UK’s top 200 companies used an external provider to assist with board performance evaluation last year. ICSA is concerned that, if companies do not benchmark internally-driven processes from time to time by using an external facilitator, then evaluations could become less valuable – or, in the worst case scenario, the equivalent of children ‘marking their own homework’.

Why is it so important to have an external evaluation process? Simply put they are designed to enable the board to do its job successfully.

Although these evaluations are often treated solely as a check on compliance, they are also a powerful tool to lift performance. External evaluators help board members identify areas where key skills are not meeting Company strategic requirements and they improve the quality of decision making by taking an independent and objective view of the company’s activities.

Does your company use the services of external board performance evaluators?

How do you think your company benefits, or would benefit, from using them?