Thinking About Pursuing a Board Position? Four Questions You Should Answer First!
1. Why do you want to serve on a board?
Understanding your motivation for wanting to serve on a board is crucial. This introspection goes beyond simply stating a desire for career advancement or new experiences. It’s about identifying a deeper purpose that aligns with both your personal goals and the needs of the organization. For instance, you might be an expert in operational excellence, possessing a wealth of experience in streamlining processes and improving efficiency. In this case, your motivation might stem from a desire to apply these skills to help a company build a robust, long-term operational strategy.
Alternatively, if you specialize in strategic growth initiatives, particularly those involving programmatic transactions, your "why" could be about leveraging your expertise to guide a company through mergers, acquisitions, and other growth opportunities. The key is to articulate how your unique skills, talents, and experiences can benefit the company and its shareholders. This alignment of personal expertise with organizational needs not only clarifies your purpose but also enhances your value proposition during board interviews.
A useful exercise in uncovering your true motivation is the "Five Whys" technique, often used in root cause analysis. By repeatedly asking yourself "why" you want to be a director, you can dig deeper into your motivations and uncover the fundamental reasons driving your interest. This process helps ensure that your decision to pursue a board position is well-founded and aligned with your long-term career goals.
2. What do you know about board governance?
A thorough understanding of board governance is essential for any prospective board member. Governance encompasses the systems, processes, and policies by which companies are directed and controlled. It involves understanding fiduciary duties, regulatory compliance, and the strategic oversight responsibilities of a board.
Have you taken courses from institutions like the Private Directors Association, NACD, or programs offered by universities such as Wharton or Northwestern? These programs provide a solid foundation in governance principles and best practices. Additionally, members-only organizations like the Latino Corporate Directors Association and the Executive Leadership Council offer specialized training and networking opportunities that can further enhance your governance knowledge.
Experience in the boardroom, whether through career responsibilities or service on nonprofit boards, can also be invaluable. Nonprofit boards often have structures and governance practices similar to corporate boards, providing a practical understanding of board dynamics and responsibilities. Furthermore, engaging with mentors or peers who have board experience can provide insights and real-world perspectives on effective governance.
Understanding governance also means being aware of the evolving landscape, including emerging trends and challenges. Boards are increasingly expected to oversee corporate sustainability and social responsibility initiatives. Staying informed about these trends and their implications for board governance will prepare you to contribute meaningfully to board discussions and decisions.
3. Do you know the time commitment?
Board service is a significant time investment, often more demanding than many anticipate. For private company boards, the median time commitment is about 200 hours per year, while public company boards require around 300 hours annually. This time includes meeting preparation, travel, actual meeting time, committee meetings, phone calls, and occasional additional events.
Understanding this commitment is crucial because it impacts your ability to balance board responsibilities with other professional and personal obligations. It's essential to have an honest conversation with yourself about whether you can dedicate the necessary time and energy to fulfill your board duties effectively.
Special circumstances, such as lawsuits, mergers, or acquisitions, can further increase the time required. During these events, the board may need to convene more frequently, and the complexity of discussions and decisions can intensify. Being prepared for these eventualities is part of the commitment you make when joining a board.
Additionally, the role of a board member is not just about attending meetings. It involves ongoing education, staying updated on industry trends, and engaging with stakeholders. The best board members are those who go beyond the minimum requirements, actively contributing their insights and expertise to drive the company forward.
4. Have you gotten approval from your current company to serve on another company’s board?
Before pursuing a board position, it's essential to understand your current employer's policies regarding board service. Some companies do not allow their employees to serve on outside boards, while others may have specific guidelines or restrictions on acceptable companies. Even with approval, you need to be vigilant about potential conflicts of interest.
Discussing your intentions with your employer early in the process can help avoid misunderstandings and ensure that you comply with company policies. Transparency is key, as undisclosed board service can lead to conflicts of interest or breaches of fiduciary duty.
Moreover, even with employer approval, you must continually assess potential conflicts of interest. Serving on a board involves making decisions that could impact your primary employer or create competitive conflicts. Maintaining clear boundaries and adhering to ethical guidelines is essential to preserving your professional integrity and the trust of both organizations.
In conclusion, pursuing a board position is a significant commitment that requires careful consideration and preparation. By reflecting on these four questions, you can ensure that your motivations, knowledge, and readiness align with the responsibilities and expectations of board service. This introspective process will not only prepare you for the role but also enhance your ability to contribute meaningfully to the governance and success of the organization.
ABOUT FRED SIEGMAN
Fred Siegman is President, Siegman Consulting Services. Fred helps clients build expertise in self-marketing- the intersection of strategic networking, personal branding, and personal PR. As a lifelong Serial Connector®, his work often helps diverse clients make connections to board of director targets. Fred founded his firm in 1996. He received an MBA from the University of Chicago Booth School of Business and a BS from the University of Illinois Chicago.
Disclaimer: The views and opinions expressed in this blog are solely those of the authors providing them and do not necessarily reflect the views or positions of the Private Directors Association, its members, affiliates, or employees.