All numbers are not created equal : Measurement issues in assessing board governance

This paper discusses common problems evident in many governance reviews with particular emphasis on the measurement problems often evident in such undertakings. The paper is written from the perspective of a consultant who has had the opportunity to assess the governance practices of numerous corporate and not‐for‐profit organizations and is based on the author’s experiences and anecdotal perspectives, as well as on the guidance available from comparing frequently observed practices in the measurement of governance matters with related instances of workplace assessment. Common measurement problems are outlined, such as unpegged rating scales, poorly crafted 360E reviews, self‐assessment, confusion between outcome and process measures and the lack of normative standards, with a particular emphasis on understanding limitations in the utility of such reviews imposed by the quality of the data. Methods to improve the quality of governance review information are presented, together with a practical framework to implement a process of governance review at the board table.