In today’s dynamic agricultural landscape, regular assessments of the board of directors are essential for supporting strong governance, aligning with member-owner priorities, and enhancing cooperative performance.
This article outlines:
A successful board assessment begins with clearly defining the goals of the assessment and core competencies to be evaluated.
For agricultural cooperatives, core competencies often include areas such as strategic planning, financial oversight, risk management (including commodity and market risks), succession planning, and board culture.
Example:
A Midwest grain cooperative focused its board assessment on strategic foresight and member engagement. By identifying "market responsiveness" and "member communication" as key competencies, the board improved its ability to anticipate industry trends and strengthened its connection with local producers.
Before board members begin the full board evaluation, each individual director may complete a self-assessment of his/her own performance and contributions. This includes a review of goals and personal reflections on performance relative to board expectations. This step adds important context and fosters more informed comparisons with feedback from the full board.
Board members are given the opportunity to respond to a series of questions about individual and/or full board member effectiveness. This typically includes rating specific areas and offering open-ended comments. Clear guidance helps ensure thoughtful and consistent input across the board.
Once evaluations are completed, responses are compiled into summary reports. These include summarized ratings and board member feedback. Reports are usually shared with the board chair or governance committee for review and discussion.
Consulting partners—such as Foundations Consulting—can assist with the development and logistics of the assessment process. From drafting questions to coordinating an efficient process with reminders and deadlines, this support ensures confidentiality, clarity, and high participation rates. Continuing that clarity via transparent communication about the purpose of the assessment builds trust and encourages honest input.
After assessments are complete, facilitated feedback sessions bring the results to life. These sessions, typically involving the board chair and governance committee, allow for reflection on feedback themes and identification of improvement opportunities. A neutral third-party facilitator helps guide constructive discussion and supports alignment among stakeholders.
Based on the assessment outcomes, the board (and CEO, as needed) work together to develop actionable next steps. These plans often include goals such as enhancing board training, clarifying strategic roles, or improving meeting effectiveness. Responsibilities, timelines, and success metrics are established to ensure accountability.
Example:
A regional Farm Credit association learned through its board assessment that while the board was highly unified, there were concerns about long-term strategic planning. Through a facilitated session, the board agreed to host an annual strategic retreat, launched a leadership development program for emerging directors, and revised its meeting structure to include time for long-range discussions. A follow-up assessment the next year showed stronger strategic alignment and higher board engagement.
Board assessments should not be viewed as a one-time exercise. Cooperatives benefit most when the process is embedded in a cycle of continuous improvement. This includes periodic progress check-ins—whether during board meetings or through mid-year surveys—to measure follow-through and identify emerging issues. Keeping the assessment front of mind sustains momentum and reinforces a culture of accountability.
For agricultural cooperatives, strong board governance is foundational to long-term sustainability and member value.
Regular assessments provide a structured approach to strengthening board performance, enhancing strategic focus, and fostering collaboration between board and management. When done well, they drive lasting impact and ensure the cooperative is well-positioned to serve its members in a rapidly changing ag economy.
For more information on board assessments and facilitated feedback, contact: consulting@farmcreditfoundations.com.