Part of the role of a board director is participating in appropriate opportunities to guide and mentor company executives beyond the board/CEO relationship. The executives are not the only ones who gain from this experience. The CEO, directors and the company realize benefits from this interaction and exchange of ideas. Like all mentoring relationships, to best achieve those benefits, there are important aspects to keep in mind.
The mentoring relationship between a director and executive may be requested by a CEO who sees an opportunity for that executive to learn from a director. The CEO may identify an executive with a specific area of responsibility and connect him or her with a director who has expertise and held past roles in that same area. For example, a company’s supply chain executive could benefit from regular interactions with a director who is a subject matter expert in supply chain.
Alternatively, an executive familiar with the director may request such a pairing. In this case, the executive should explain to the CEO why this will be a good use of their and the director’s time. The director may also see an opportunity and volunteer their time. Either way, the request should go to the CEO, the CEO should suggest it to the other individual, and this should not be initiated or intended as a way to work around the CEO in his or her relationship and responsibility with executives.
This does not need to be a formal program. It is often better to let the executive and the director determine what works best for them and for the executive’s needs in terms of frequency, duration, topics and other aspects. Both people need to want it — the effort is less likely to be successful if it is forced on the executive. The director should see this as an intrinsic part of their role, so that should not be an issue. If it is, that may be something worth asking prospective new directors about in the future.
It is important that the director remembers that this is a mentoring role and not a chance to act as the executive. It is helpful to keep in mind the “nose in, fingers out” adage. It is not appropriate for the director to second-guess the CEO during discussions with the executive, as this undermines the CEO’s authority in the organization. Often, this can be a good forum to reinforce the CEO’s initiatives and how they support the company’s strategy. It may also bring to light some good topics for discussion with the CEO or at board meetings, especially if it can be done in a way that does not look like the executive is complaining about the CEO unless clearly warranted.
The most obvious beneficiary is the executive, but everyone can win from this initiative.
Executives. The primary benefit is in receiving guidance on challenges new to the executive, ones that the director may have already seen through work at other companies (including in other industries) and through other director positions. Good executives will take advantage of this opportunity to learn from directors who may have more or different experience. This also provides exposure to board and director thinking and experience, which is essential for the executive to succeed in the current role, even more so if they are considering a CEO role in the future.
Director. He or she has the pleasure of sharing knowledge and making an impact to help the person and company, which can be very fulfilling. Additionally, the director gains insights and a more detailed understanding of the company, including how it functions and the challenges it faces. This can greatly assist in board discussions.
CEO. Of course, a higher-performing executive, and one better equipped to take on the challenges they and the company are facing, can only help the CEO in driving the company’s strategy and achieving its goals. It also helps to have the director serving as an additional reminder of that strategy. A more knowledgeable board director, resulting from interactions with the executive, helps the CEO in discussions with the overall board.
Company. If the director/executive mentorship relationship is effective, the company will reap the benefit of improved performance, such as through solutions the executive may not have thought of otherwise. The director’s familiarity with the executive can be useful in other ways. While not intended primarily as an assessment of the executive (which could interfere with the mentoring aspect), it does provide the opportunity to identify potential or challenges, which may lead to recommendations related to succession planning, including formal training, development opportunities or other roles.
Directors have a lot on their plates with the growing risks, challenges and regulations they are faced with. Adding another responsibility should not be taken lightly. Mentoring executives is a natural fit for this role and provides enough benefits for all involved that it is worthy of their valuable time.