Board performance evaluation: a case study of a private hospital in Australia

Sound corporate governance principles are a prerequisite for the effective performance of modern organisations. Members of the Board of Management of a private hospital in Australia were concerned with establishing a process whereby the Board could gauge its own performance in relation to the governance of the organisation. The paper outlines the process adopted by the Board and provides a summary of the outcomes of the process. The research project utilised an Action Research design (first cycle) involving the development of a self administered questionnaire. While adopting sound governance principles, Boards of Management in the Private Health Care sector need not converge or diverge from private sector corporate governance standards and can design an evaluation process that maintains their cultural identity and yet conforms to sound governance principles. The paper is of significance to academics researching corporate governance, to members of Boards of Management and to consultants that practice in the area of governance for Boards.