Frequently Asked Questions
Here’s what you need to know.
Why and when BoardClic?
Why does a board need evaluating?
The ultimate goal of evaluating your board work is to increase collective efficiency. An unbiased evaluation provides a deeper understanding of the strengths and the weaknesses of your board. This, in turn, opens up for better communication and alignment within the board, and also between the board, the CEO and the executive management.
There are new members in my board. Should I wait to evaluate until they know the board and the company better?
A board evaluation is the perfect way to recalibrate a novel board composition. The initial evaluation of a newly composed board provides a fresh start and creates a baseline for future evaluations. It’s better to identify your differences early on and to use them as an advantage rather than later finding out they were a barrier to success.
Why should I pay for an external tool when I have a set of questions I have used for several years?
There is a risk to only using your own questions when evaluating your board. Everyone is affected by their own cognitive biases, even you. In fact, when it comes to executive decision-making, one of the most prominent biases is overconfidence. The thing with overconfidence is that you tend to see yourself as unbiased and that you are in full control – but in reality, you’re not.
It’s common for chairmen to use questions based on their pre-assumptions on where a certain problem lies. A third party provides an objective perspective with a birds-eye view of your company and board – which you, since you’re deeply involved, couldn’t possibly bring to the table.
It can also depend on which corporate governance code you are entitled to follow. In many countries there is a demand, or even a requirement, for third party evaluations.
How often should I conduct a board evaluation?
Board evaluations are preferably conducted at least once a year. Since you can never completely disregard contextual factors that may affect participants’ answers, evaluating annually or biannually makes the timing for the evaluation even more important. In some cases, when circumstances are extraordinary (as in the case of COVID-19), it’s wise to follow-up with a second evaluation that same year.
All of BoardClic’s plans are subscription-based, meaning you can use them as frequent as you like during the license period – in turn making this choice a lot easier.
I am an investment professional at a private equity firm. I’m looking for an easy-to-use evaluation solution for one of my portfolio companies. Why should I use BoardClic?
Firstly, using BoardClic saves time for the investment professional, the chairman and the evaluation participants. Our platform is complex in the way it’s developed, and is backed by research and decades of experience. But the BoardClic evaluation process itself is a smooth, time-efficient and cost-effective alternative to both homemade surveys and consultant-driven projects.
A private equity firm has every reason to use BoardClic in all their portfolio companies. As an investor, smart evaluations help you unveil roadblocks to success originating from a company’s top level. It’s not rare that boards of directors and executive management teams aren’t aligned when it comes to priorities in e.g. strategy implementation or even the strategy itself. Alignment within (horisontally) and between leadership teams (vertically) is known to be crucial for success further down at the company’s operative level. As an investor you shouldn’t just settle for a one-dimensional simple board evaluation but should go for a deeper evaluation that considers perspectives from board to executive management and the prerequisites and processed for executive managers to act on and implement the company strategy. Further, by evaluating in the same way within the portfolio from year to year, you get a great overview of the status and development of your companies. Not to mention all the time and frustration you spare by not having to switch back and forth from numerous differing evaluation solutions…
Choosing the right BoardClic subscription plan
I’m unsure which package is best suited for my needs. Which one should I pick?
Pro is statistically our most popular package. It provides an analysis of the result where you reveal misalignment in priorities and opinions between different roles. The plan includes both a board evaluation and a CEO evaluation, with a similar type of analysis for the CEO as for the board. Also, studying both evaluations concurrently provides you with a more accurate overview of the synergy between those entities.
Essential gives you the same board evaluation content as in Pro but with a slightly lighter results report, and does not include a CEO evaluation. This plan is mainly for boards or chairmen that have never conducted an evaluation before. Essential does not offer the same level of transparency and analysis between roles as in Pro, but highlights your strengths and weaknesses, and sums up prioritised areas within the board.
Corporate is for boards that have conducted evaluations for many years prior and perhaps have certain questions they want to include in their evaluation (such as their own questions or BoardClic bespoke sector-specific ones). The plan includes everything in Pro, plus a third-level evaluation of the CEO and executive team. This gives you further insight into how the CEO and executives can act and work together according to the strategy and prerequisites set by the board.
Investor is suitable to use for a portfolio of companies. The plan includes questions regarding active ownership and a thorough evaluation of the board, CEO and executive level (as in Corporate) – but for all companies in your portfolio. We also offer discounts depending on the size of your portfolio.
There are too many questions in your surveys. Can I remove some?
Yes, you can. If you opt for the Corporate plan you have the opportunity to tailor-make parts of the content. Contact us to learn more.
We’re a small board. Do we need to evaluate the same way larger boards do?
It doesn’t matter if you’re e.g. on a small board of directors in a large company with high revenue or a small board in a small company that handles high risk or big assets. Irrespective of the size of the board, many aspects of governance are generic.
Yet, if you’re on a small board that has never conducted a board evaluation before, we suggest you start off with Essential. You can always upgrade to Pro at later stage if you’re eager to dig deeper into your results.
Can we tailor the statements to include our own from previous evaluations?
Yes, if you opt for the Corporate plan you have the opportunity to tailor-make parts of the content. Contact us to know more.
The BoardClic evaluation process
How much time can we expect the preparation process to take from BoardClic’s side?
We can get the process started within a day or two. Here is how:
- The buyer (most often the chairman) receives a digital contract from BoardClic, which is to be signed electronically.
- The account owner fills out an onboarding form that outlines certain details of your company in order to help BoardClic categorise your data correctly in the database. The form asks for the names and contact details of all participants, and the requested start and end date of your surveys.
- BoardClic sends out links for the surveys to all participants, and reminders are provided if necessary. On that note, BoardClic’s customer success managers are always there for any participant who may need support.
- The digital report is generated on the platform and access is given to those with permission.
How do I take the survey? What do I do when I get my survey link?
Click on the following link for a video showcasing the process:
BoardClic evaluation walkthrough.
Why do you use the 1-7 range to score questions? How do you calculate the BC benchmarks and indexes?
The rating is calculated using a so-called Likert scale, which is a scale commonly used in e.g. social science research. A Likert scale usually has a 5, 7 or 9-point response plate, with BoardClic using the 7-point system. This is to balance giving the participant a clean and easy-to-use interface whilst also providing the possibility of being somewhat nuanced in the rating.
All of our reports include a “Board Value Score” index in their respective executive summary. This index is calculated based on a set of statements that measure certain crucial governance aspects for organisational success. In all plans, apart from Essential, you are able compare your result to the BoardClic benchmark value of a certain question or statement. The comparison is made to all other companies in our database.
The evaluations state that they take around 30 minutes to complete. Why does it have to be that long?
Of course, no type of evaluation should take too much of the participant’s precious time. But, if you expect to gain value and not just conduct a “box-ticking exercise”, the evaluation shouldn’t be a quick fix. The content in our evaluations are built upon extensive experience in the corporate governance field as well as multidisciplinary research, and consistently goes through a meticulous quality check.
Click on the following link to check out this short film: Science behind BoardClic
Our surveys are designed to draw your attention whilst filling them out, but also for you to be able to pause and get back to it again later if needed.
How do I present the results to my colleagues?
It’s very simple and user-friendly. On the BoardClic platform you can instantly generate a presentation with just one click of a button, which in turn can be shared with your board any way you like – either by download or directly in the app.
If you want help with presenting the results at a board meeting, let us know!