Arm's length body boards: guidance on reviews and appraisals
Principles and resources to support regular arm's length body board effectiveness reviews and board member appraisals.
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An effective board is crucial to the effectiveness of an arm바카라 사이트檚 length body (ALB), and an effective ALB delivers better outcomes for the public. Through regular review and appraisal of their boards and non-executive board members, ALBs can realise a number of benefits:
- building and maintaining board quality and effectiveness, which is at the centre of an effective ALB
- identification of strengths and weaknesses
- promoting a culture of continuous improvement and learning throughout the organisation
The sets best practice in the private sector for review and appraisal. The 바카라 사이트 believes that private sector best practice should be public sector best practice and therefore requires public corporations and government-owned companies to apply the Code to the extent it is appropriate. Best practice for other types of ALBs is set out in the . The Cabinet Office and UK 바카라 사이트 Investments (UKGI) have co-developed this guidance to support ALBs and their sponsor departments in meeting their requirements within those Codes on reviews and appraisals.
This guidance is in three parts and covers:
- Board Effectiveness Reviews. These provide an annual (and three-yearly) opportunity to evaluate the whole board and improve both its individual components, and as a unit. It should help inform appraisals of board members;
- Non-executive director (바카라 사이트�NEDs바카라 사이트�) appraisal. An effective board requires effective NEDs. To understand their effectiveness, they must receive annual feedback, appraisal and development.
- Chair appraisal. Appraisals of the chair provide an annual opportunity to review whether the ALB is delivering its objectives and supporting Ministers바카라 사이트� strategic aims, and the effectiveness of the chair and the board under their leadership.
Applying this guidance
Departments and ALBs should see appraisal and review as part of an annual rhythm. This starts with setting the ALB바카라 사이트檚 objectives and priorities in the first quarter of the financial year, a board effectiveness review should be undertaken in the third quarter, while appraisals should take place early in the last quarter. While ALBs vastly differ in their role, structure and size - good governance is good governance. Therefore, the principle of 바카라 사이트榗omply or explain바카라 사이트� applies.
While this guidance is primarily intended for the use of ALB boards, other public bodies are encouraged to follow it where applicable. The following conventions are used to show the intention:
- 바카라 사이트榤ust바카라 사이트� indicates a requirement: a mandatory element;
- 바카라 사이트榮hould바카라 사이트� indicates a recommendation: an advisory element, which is established best practice; and
- 바카라 사이트榤ay바카라 사이트� indicates an action/approach that is permitted.
This guidance should also be read alongside:
- Managing Public Money
- Corporate Governance Principles for 바카라 사이트 Departments
- 12 principles of Governance for all public body NEDs
- The Code of Conduct for Board Members of Public Bodies
Contact
Any questions on this guidance should be addressed to: publicbodiesreform@cabinetoffice.gov.uk