Board Effectiveness Review

Tender description

The purpose of this project is to undertake a review of Board effectiveness and the effectiveness of the Audit and Risk Assurance Committee (ARAC) and the Remuneration and People Committee (RemCo) as the principal active Board Committees. We carried out effectiveness reviews of the Board and ARAC in March 2017, and RemCo in January 2018. We also stated in our 2017-18 Annual Report and Accounts that the Board regularly reviews its effectiveness, and that we intend to undertake another formal assessment in 2018-19, once the new Board members and the Chief Executive are established. In November and December 2018, Board members are completing questionnaires about Board effectiveness. This process is taking place alongside the individual performance appraisals that are being carried out by the Chair. We did not carry out effectiveness reviews of the other Board committees during 2017 or 2018. This decision was made because the Thames Tideway Tunnel Committee, the Casework Committee and the Nominations and Governance Committee generally only meet when required and at that time were not having to meet regularly or at all. We are not currently proposing to carry out formal effectiveness reviews of these committees. Requirements Overall Objectives of Project The overall objectives of the project are to: • Test the Board's role in setting and monitoring the strategy and direction of Ofwat, including how the Board utilises the Ofwat strategy to drive its activities and how it monitors implementation; • Evaluate how the Board fulfils its advisory, challenge and support role in relation to the Executive, • Consider the dynamics and functioning of the Board and committees, including: o considering where the Board focusses their time by reference to the above roles and objectives, o understanding whether the Board and committees work cohesively and members are effective as a team, o considering the interactions and communication with Chief Executive, Executive Directors and other senior executives, o testing the cohesiveness and the quality of participation in Board meetings; • Consider the quality of information available to the Board and committees and the quality of the support infrastructure; and • Consider the mechanisms for the selection process for new board members (SoS makes appointments), and succession planning, in particular to consider how best to approach recruitment to ensure an appropriate spread of skills and diversity, including of experience; and • Recommendations to address areas identified for improvement.