Shortcuts to Board Leadership - Part Two
In 2018, I published a blog entitled, “Shortcuts to Board Leadership” as I was getting quite a few requests (and still do) about how to accelerate one’s journey to board service, particularly in the private/public company sector. I’ve shared it with numerous people who have hopefully gleaned some insight from my two primary points: (1) Establishing a clear personal narrative about your uniqueness and (2) Becoming top-of-mind with those who nominate candidates.
Oh, and the punchline: There are no shortcuts.
Since that time, the pressure to diversify boards has increased even more. The continued threat of strategic disruption calls for more relevant skills around technology and cybersecurity. The social unrest incidents that took place in the summer of 2020 highlighted the need to increase opportunities for people of color. An elevated focus on ESG calls for voices in the boardroom that can help shape the strategic agenda of an enterprise’s role to the wider community. Finally, the changes brought about by the COVID-19 pandemic further advantages boards which have directors in touch with the changing desires and preferences of today’s workforce.
As a result of these factors, the traditional practice of considering only C-suite executives for board service is being questioned. More general managers, division-level CFOs, SVPs of technology, those with specialized industry skills, and individuals with only experience in academia or the public sector are weighing the possibilities of becoming directors. Particularly in the interest of diversifying gender and ethnicity, recruiters and governance committees are giving consideration for more specialized knowledge and perspective. I know this because of the calls and referrals I’m receiving from both recruiters seeking to widen their network and from individuals who seek those opportunities.
What was once a role only available to sitting/former CEOs, CFOs and a scattering of C-suite executives is now a possibility for those slightly lower in organizations. But as a result, the odds of finding those coveted board seats are becoming even more difficult as the net gets cast wider than it ever has in the past. How can candidates truly stand out amid the thousands of resumes being circulated to sitting directors and recruiters every day?
Although most companies have on-boarding programs, those are generally designed to familiarize new directors to the business of the enterprise. Because directors in past decades have been selected primarily from board-facing executive roles, it has been unnecessary to train individuals on the actual role of a director; they’ve all known how a board feels and operates because they've spent a great deal of time in the room. New directors today who might not have had board-facing roles (and have only presented to the board from time to time) should nonetheless have a strong understanding of the duties of directors and be able to participate as a full director from Day One of board service.
Fiduciary responsibility and oversight of strategy and enterprise risk continue to be among the primary role of the Board of Directors. Understanding these areas of a director’s role is critical, and a candidate can increase his/her advantage to be prepared. There are a few great programs that can prepare executives for board service; many are offered by university business schools or organizations that serve the board community. In the United States, the premiere organization for board governance, NACD, offers a comprehensive director certification. As an item-writer for the foundational exam and now a member of its Corporate Directors Institute oversight board, I can attest to its rigor, thoroughness, and relevance. Internationally, the Institute of Corporate Directors of Canada, and the Institute of Directors for the UK both offer good background for board service and assessment of board readiness in their respective markets.
The competition for board seats will only become more intense in the coming years. As the scrutiny of enterprise continues to grow in our society, having the right voices around the table becomes increasingly more critical. Positioning yourself as a qualified director with unique experience and perspective is the key to standing out from the ocean of candidates vying for slots. For those who haven’t held significant board-facing jobs, the attractiveness of your candidacy can be increased by investing in preparation. That combined with the two points I made in my initial blog will get you as close as you can to a shortcut.