The “science” of director selection, analyzing the competencies and experience boards require to accomplish their work, gets a lot of attention. The intensity and importance of the board’s work has accelerated in recent years, pushing boards to enhance their arsenal of governance skills. But predicting who will prove a valuable team player and leader in the boardroom is far more complex.
A commonly acknowledged pitfall in executive selection is that people are often chosen for what they know, only to struggle later, on the basis of who they are as leaders. This challenge has a parallel in the realm of director recruitment.
Can you think of a highly successful CEO who would not likely be an effective director? Of course you can. The boardroom is a distinct environment and what it takes to be effective in the boardroom overlaps but isn’t congruent with what it takes to be a strong CEO. Boards are a special sort of team and peer group that must work together toward common goals, but comprise individuals who have been leaders in their “day jobs.” Understanding group dynamics, and using them to advantage, is key.
It is often the softer and more difficult-to-quantify leadership traits—the “who?” qualities—that make for a successful contributor in the boardroom: how someone works with others, approaches decision making, handles ambiguity, exerts influence and uses persuasion, and understands the important difference between alignment and consensus. The art of determining what kind of leader a prospective board member represents merits as much consideration as scrutinizing the individual’s skills and experience.
A rigorous director selection process starts with an individual’s knowledge base and specific competencies,including details on
accomplishments and experience. While these are the most straightforward areas to evaluate, their importance should not be underestimated. The right experience, reputation and achievements serve as an “admission ticket” to the boardroom, and immediately establish a new director as a peer with whom other directors can share respect and work challenges. However, evaluating the “who” leadership qualities, and ensuring that they are compatible with the team, can make all the difference.
There is another dimension to “who” that is distinct from leadership itself, but plays an important role in effectiveness in the board setting—personal values. We have all heard a great meeting or an initial connection with someone described as “good chemistry,” and we intuitively understand what it represents and how vital it is. “Chemistry” happens when people connect on values, building immediate trust and confidence. Getting to the heart of those values is highly relevant when assessing an individual’s fit with the specific culture and dynamics of a given board.
Here, personal values are not about ethics or legality—those are givens—but rather about the choices that define us and our approach to a range of challenges and personal interactions. Determining the values of director candidates is not easy, but it is critical to making the best decision, one that will endure for years to come.
Aligning directors’ values should not be misconstrued as an argument against diversity of opinion in the boardroom. Board clients often tell us their “culture” works well and they don’t want to disrupt it. But that is not to say that they all look, think, and act alike; quite the contrary. A board that works productively as a team, knows how to engage in constructive discussion and disagreement, and arrives at a decision based on alignment is a valuable asset. Enhancing and preserving that asset is the real goal of new director appointments.
Steve Mader is vice chairman and managing director of Board Services for Korn/Ferry International.