Being on a Board of Directors can be fun, challenging and rewarding. It can also be very scary at times. There is much written about what to do when you are on a Board, but not so much about how to get onto a board. HBR Online have a great article entitle ‘Are your ready to serve on a Board’ (read it here). The article proposes 5 key areas that aspirants need to develop in to ensure they have the right intelligence (skill)s. The full article has much more detail, including how to develop that skills, but following is a quick summary of the 5 key types of intelligence:
- Financial
Important here is the ability to interpret an income statement and use that to get a picture of the business, and what is or isn’t working. It is also about being able to listen to the CFO and know what questions to ask to ensure they are being kept accountable.
- Strategic
This involves translating strategy into financial implications, and vice versa. Also, it is important to understand ESG issues (environmental, social, governance), and to be able to take a longer-term perspective.
- Relational
Firstly this is to be able to transition from an operational mindset to a strategic and monitoring one. It also involves building positive working relationships quickly and being able to communicate well with others.
- Role
Knowing what your contribution can be, and on which issues you can add the most value.
- Cultural
Ensuring the company executives feel the board is welcoming and supportive of their contributions, even if it is bad news.
As mentioned earlier, the article provides some good steps on how to develop in each of these intelligence areas, but overall, seeking the advice of experienced colleagues is a good start. And don’t forget, people won’t know you are interested unless you express your desire to be considered at this level.
Dr Warrick Long, Senior Lecturer and
Postgraduate Leadership Studies Coordinator