THE IDEAL BOARD CANDIDATE
More and more boards are identifying gaps in board skills and experiences. The consumer, market, technology, cyber and behavioural driven changes within the organisational landscape are putting greater scrutiny on the board’s short- and long-term strategic goals, performance, risk assessments and capacity to adapt.
Board member renewal, the skills matrix and appointment processes are also under scrutiny as they are an important element of the board governance framework. Boards are expected to have intellectual rigour drawing on a mix of functional expertise, industry experiences, qualifications and demographics for diverse business and governance perspectives on wide-ranging, complex current and future issues.
A recent Egon Zehnder article on the investor pressures faced by boards rightly points out: nominating committees must abandon old assumptions and rethink some of their implicit assumptions about what a board director should look like – which job titles are acceptable, what type of path defines a successful career and how well-known a director candidate should be to those already on the board.
This may mean selecting on potential and transferable skills. Some of the issues that the nominations committee and prospective candidates should consider include:
Nominations committees that answer the question “who is the ‘right’ director given our future direction?” create the capability for a stronger organisation.