Serving on a board as an independent director has many facets. I’ve had the great fortune to serve on more than a dozen boards (so far). They range from companies that have just begun their governance journeys to those that have been in place for decades to those of 100-plus-year-old companies! From my vantage point, three elements are critical to be a great board director. The “3 Ps of High Performance” are:
- Perspective. Strategic oversight gained through roles as CEO, CFO or division president/gm
- Perseverance. Staying engaged despite the infrequency of meetings
- Passion. Being deeply interested in the company’s business and mission
Perspective
CEOs (and often CFOs) have broad strategic perspectives, as they are continually leading across all functions and navigating complexity. This experience in invaluable in a boardroom, as it provides skills to quickly assess a company’s effectiveness at developing and delivering long-term competitive advantages. Given today’s dynamic business landscape, CEOs with proven track records of nimbly adapting to change make great board members, since a fundamental board responsibility is evaluation of company strategy. While other C-suite functions can blossom into effective board members, only experience as CEO or CFO can quickly help to bring the essential broad strategic perspective to a board.
Perseverance
The role of the board is to evaluate how the company is being managed, not to manage the company. Consequently, it’s critical to focus on the top priorities so you, as a board member, understand how management is addressing them. Sometimes that requires a bit of a nudge from the board to ensure their questions and concerns are addressed, either through follow-up between board meetings or via agenda topics. Every high-performing board member has the responsibility to be informed about and make sure that agreed-upon top priorities truly stay on top. That’s where a board director’s perseverance is most needed.
Passion
If you don’t love the business, why spend time on it? Sometimes, board meetings can be a bit tedious (none of my boards, of course!). Topics are often revisited. Strategies fail and have to be fixed. People challenges are continual. If the business and industry aren’t exciting to you, it will take you significantly more effort and time to be a high-performing board member, if that is even possible without some level of passion. Effective nom/gov committees understand the importance of business passion and incorporate it into board evaluation processes and recruiting efforts. Join the board of a company that you enjoy. You and the company will be better for your passion.