Unlocking the Value of Board Evaluations in Switzerland: From “Black Box” to Data-Driven Effectiveness
by Dr Sabine Dembkowski, Better Boards Ltd, London
Board evaluations are increasingly recognised as a strategic necessity within Swiss corporate governance. The Swiss Code of Best Practice does not mandate a uniform approach but upholds transparency, accountability, and regular self-assessment as core elements for effective governance. Consequently, boards are expected by regulators, investors, and the broader public to demonstrate not only compliance but also measurable effectiveness.
Directors frequently express concerns about the perceived value of board effectiveness evaluations. Such processes are often viewed as costly, subjective, and as providing limited novel insights. These reservations prompted advisors to create frameworks which provide structured ways to evaluate both the technical and behavioural dimensions of board work. A model that is quite often cited is the four-pillar model of IMD, which highlights:
- People: Competence, diversity, and the dynamics between board members.
- Information Architecture: The flow and quality of information available for decision-making.
- Structures & Processes: Board roles, committees, and procedural effectiveness.
- Group Dynamics & Governance Culture: How the board interacts, handles dissent, and creates an effective governance culture.
Clients kept challenging the framework and asked about the levers they could pull, collectively and individually, to enhance the board's performance and effectiveness. The continuous questions sparked a research initiative. The research included a review of relevant German and Anglo-Saxon literature and interviews with board members and investors, to distil the factors underpinning effective boards and provide practical insights into the levers that can be leveraged to enhance performance and effectiveness. The research resulted in the 7-Hallmarks model. Today, some of Switzerland's leading organisations have built their effectiveness evaluation processes on the 7-Hallmarks model, which is why we would like to detail the elements in this article:
The strength of the board
Effective boards recognise and utilise both collective and individual strengths. This can be challenging in smaller Swiss boards and remote meeting environments, underlining the importance of deliberate relationship-building among directors.
Composition of the board
The trend toward greater diversity continues, but effectiveness hinges on a complementary mix of experience, particularly in key areas such as digital technology, cybersecurity, and ESG, where capability gaps are often observed.
Clarification of Roles and Responsibilities
Switzerland’s dualistic governance model requires explicit clarity to maintain the distinction between board and executive roles, particularly where hybrid designations could introduce ambiguity or conflict.
Vision, Goals, and Focus of the board
A board’s alignment around vision and long-term strategy is critical. However, operational concerns can take precedence, especially in family-owned enterprises and KMUs. It is necessary to allocate sufficient deliberation to strategic issues.
Structure and organisation of the work of the board
Efficient board processes are characteristic of Swiss governance. Nevertheless, streamlined agendas and concise materials are important to maximise time for strategic discussions
Ability to resolve conflict
Consensus-driven cultures, like those prevalent in Switzerland, sometimes discourage open disagreement. Effective boards foster an environment where differing views are constructively addressed rather than suppressed.
Regular reviews and reflection of the work of the board
Ongoing reflection on board dynamics and effectiveness contributes to continuous improvement. Evaluation processes should be proportionate, focused on value, and demonstrably beneficial.
The model highlights the dimensions of effective boards and has proven to play a vital role in the continuous development of boards, as detailed in the Swiss Corporate Governance Code, which advocates a philosophy of continual enhancement beyond mere compliance.
Suppose you combine advanced technology with a solid, research-based framework. In that case, you increase transparency, objectivity, and scalability in board evaluations—attributes especially pertinent to Switzerland’s numerous small- and mid-sized enterprises.
Such technology can facilitate:
- Benchmarking against domestic and international standards,
- Delivery of individualised insights for directors,
- Structured, evidence-based reflection,
- Long-term tracking of progress.
Integrating technology into evaluation processes can clarify board performance and improve governance outcomes.
The Swiss Code of Corporate Governance underscores the importance of transparency, accountability, and periodic self-assessment. When undertaken using modern, data-driven methodologies, board evaluations become a practical mechanism for embedding these values. For all types of Swiss boards, transitioning evaluations from a compliance exercise to a value-creation mechanism fosters more robust oversight and aligns governance with stakeholder expectations. There exists a significant opportunity for Swiss boards to strengthen governance practices and serve as exemplars of effective stewardship for the future.
Dr Sabine Dembkowski is the Managing Partner of Better Boards Ltd, London, a provider of board evaluation services, and the host of a Top 10 Governance podcast, the Better Boards podcast series. www.better-boards.com
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