Bringing Talent to Your Board Table

Great organizations have great boards. For a board to be great, it is important that every member of the board be competent and actively contributing in leadership. It stands to reason, therefore, that the identification and selection of new board members be a deliberate process, not an accidental occurrence. Regrettably, many organizations settle for the ‘luck of the draw’ when it comes to who gets on the board.

An effective board directs and protects in the interests of the organization’s owners. Let’s clarify that throughout this article when we refer to the ‘owners’ we mean anyone who has legal, financial, or moral ownership of the organization — this could be members,shareholders, or even residents of a particular community, depending upon the organization’s situation.

Whether the board members are selected, appointed, or elected, great organizations and boards follow intentional processes to ensure a great board is in place to lead on behalf of the owners.

No More Victim Mentality

An immediate step for any board is to accept responsibility for the future composition of the board. It is best to resist thinking “that’s what our constitution requires,” or “no one else was interested,” or “our hands are tied.” The reality is that all organizations have some kind of ‘selection’ system — whether formal or informal — which was designed to help ensure an effective board. If it isn’t working, fix it. This will take leadership and, ifdone well, will greatly benefit the organization.

Clean up Begins at Home

A starting place is to realize that it is difficult to attract capable people to a dysfunctional board. And it is almost impossible to retain good directors if the board remains ineffective. Every board is well advised to work through a process of determining what the board’s job is and how each director contributes to it. When every director is conscious of the expectations of board members, they can be individually accountable to the board as a whole. Each person strives to meet the performance standard and understands that he may be asked to leave the board if that standard is not met. Prospects for the board will consider serving when they see that expectations are well defined and time will be well used — even if the board is struggling today.

When the Board is Selected

In privately-held companies, a few individuals have the luxury of directly determining who will be on the board. They can select people who will best meet the organization’s specific needs.. While this may result in an effective director, it does not ensure it.

If your board selects new directors, invest in developing a more thorough selection process. You are probably well aware of the high cost of hiring an inappropriate employee. There are also high costs to accepting an inappropriate director. To move toward an effective selection process, work together as a board to clarify the role of a board objective rather than simply subjective. This will provide tangible information which can both aid your selection and enable the candidates to make more grounded decisions about whether to accept a directorship.

When the Board is Elected

The majority of organizations hold elections to determine who will be on the board. It will take time and care to help your organization elect capable people to the board. The owners need to be educated about the role of the board and the responsibilities of the directors. Communication is critical. Encourage the ownership to be looking for capable candidates for the board. You may even use an ‘advertisement’ in your newsletter or some other acceptable medium.

Be proactive in the process of getting great candidates. Work together to list names of people you believe may be effective board members. Prioritize the list and make a plan to speak with them about the opportunity, explore their potential as a director, and, if they still seem suitable, encourage them to run. In addition, it would be wise to move toward having a qualifying process for nominees. This would be a system which ensures that anyone presented as a nominee must first meet the qualifications of a director. It would be best for this set of qualifications to be affirmed by the owners, not just the board. If this list of qualifications has been created properly, the qualifying process screens out any candidate who would not be an effective director. Then the entire ownership can have confidence that any person on the list of nominees is actually a qualified candidate who could serve the organization well. From that point, the board need not be concerned about which one of these capable candidates is elected.

Summary

An important step for every board to take toward attracting talent to their table is to clarify the role of the board and the expectations upon directors. With these expectations well communicated to the owners in general and to candidates in particular, superior candidates will be identified. Utilizing some form of screening or qualifying process will help even more. When the prospects for the board clearly understand the time commitment and responsibilities, they can make an informed decision to which they can be held accountable. With support and development, your future board could be the finest the organization could ever want.