Now that the worst of the financial meltdown seems to be behind us and we begin conversations around modernizing our current form of capitalism, boards may begin to contemplate this new normal and what traits for new directors are essential. Here are my five traits for this new normal: 1. More World-Centric America's identity as the most powerful capitalistic market in the … [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...]
Future-Focused Board Succession Planning
Board succession is all about integrated thinking, foresight, and decision-making rationale. It is common practice for the governance committee to develop and maintain a matrix that outlines the skills, age, length of service, and background of each sitting director. A forward-thinking board looks at the next five to ten years and defines skills, experiences and overall … [Read more...]
Inquiring Minds Want to Know about Board Evaluations
Fundamentally, a board evaluation is an opportunity for boards as a collective body to increase their effectiveness based on feedback the evaluation provides. Continuous improvement and development of board and board committee processes and procedures is imperative to ensuring board effectiveness. Today, there is an increased level of acceptance and sophistication in board … [Read more...]
Recruiting a Director for Strategic Board Challenges – 3 Key Considerations
Creating a 21st century board means making significant transitions towards more future-focused leadership behaviors and practices. Rethinking both how new directors are recruited and successfully retained can provide a progressive focus to a director search. Candidates whose backgrounds speak to these areas will ultimately bring a honed perspective for competitive … [Read more...]
3 Networking Questions to be Ready to Answer as a Board Candidate
Many board candidates are attending high-level corporate governance conferences and educational events. They meet other directors and have the chance to develop relationships that may lead to being considered for a future board seat. The best way to connect with professionals in this audience is to give them a very good reason. If you fail to specifically state your value … [Read more...]
When is a Lead Director Really Independent?
In a recent conversation with a director who has held the lead director position in a number of public companies, the question arose---when is a lead director really independent? The director I was speaking with said a major problem on many boards is that a director is often reluctant to raise an issue, or make a strong comment, if he/she knows the chairman will not be … [Read more...]