As a board consultant, I have heard a number of stories from first-time directors who gained a board seat only to discover troubling issues ‘after’ accepting the board position. The single most important task before you join a board is due diligence. Instead of merely examining the rewards of board service, a board candidate needs to explore both the risks and rewards. … [Read more...]
3 Ways Board Directors Can Keep up with Governance Issues
How does a director stay abreast of a variety of corporate governance issues in a time of change? Directors and director candidates tell me they want to achieve impact in the boardroom, enhance their director-level education and competencies, and create competitive advantage at the board level. The challenge is how to do this in a focused manner that reduces the amount of … [Read more...]
Increasing Board Effectiveness in Strategy and Risk Discussions
"How do we increase our board's effectiveness in strategy and risk discussions?" I am often asked to provide insights and ideas to this question. Here are a few ideas: 1. Identify Training Needs Conduct a review of the board’s risk management skills and relevant industry experience. If deficiencies exist, schedule industry or risk-management training. 2. Review Key … [Read more...]
3 Questions to Evaluate CEO and Board Relations
CEO and board relations are one of the key foundations of an effective board. Trust is formed when the CEO communicates openly, proactively, and transparently. An approach that includes what the CEO is thinking and direct inquiry for board thoughts makes for a comfortable exchange. Here are a few questions to consider when thinking about your board and how the CEO … [Read more...]
Boardroom Knowledge and Experience Do Not Go into Perpetuity
Warren Buffet says, “The best way to affect the behavior of board members is to embarrass them.” While this statement may have some truth, there are better ways, to advance change for competitive advantage from the boardroom. To have the board aid in creating a competitive advantage is an important mindset. Think of it this way. In a pre-IPO company, a board may decide that … [Read more...]
Interviewing with Recruiters for a Board Seat
Your relationship as a board candidate can start with recruiters on a phone call, over a lunch or you may be called into a face-to-face meeting for an active director search. It is important to remember that how you present yourself will be viewed as how you will behave in the boardroom. Keep in mind that those getting to know you are looking at both your professional … [Read more...]
Unanimous Illusion in the Boardroom
One of the downfalls I see in boardrooms is what Daniel Goldman calls “unanimous illusion.” Goldman defines this as a behavior that, once a group adopts a belief, individual members are likely to believe it is true. All the more reason for directors to ask questions during board meetings on a broad range of topics of critical importance to their oversight role. This … [Read more...]
Situational Awareness in the Boardroom
If you want to be influential in the boardroom, foresight is essential. To do this, a director must anticipate the conversational direction and decision-making voices in a dynamic boardroom debate. To begin the process of becoming more influential, start with observing. Watch the actions of the directors during the board meeting, and ask yourself the following … [Read more...]
Approaches to Board Succession Planning
The combination of a company’s strategic and board succession plans can be a framework to begin the conversation around director search. Directors and management will most probably have differing ideas about what skills and experience should drive the search for the next director. To focus the conversation at the nominating committee level, here are a few approaches that … [Read more...]
The Board Candidate’s Guide to Networking
Great networkers have a variety of people they connect with on their professional journey. Some people have prestige and can open doors; others will be mentors and guide you with insightful commentary. Here are four key types of people to connect with and build your board-level network: 1. Foundation Foundational supporters run the gamut from friends to business peers. … [Read more...]