There are millions of board directors in the world. Every company and organization has them. Let’s be honest, many of them deserve their seat at the table. They bring huge value. Unfortunately, many do not.
“Just because you think you can be a director, doesn’t mean you should.”
Before getting started on a boardroom career, there is one question that every potential director needs to ask themselves: “Am I director material?”
There is no simple way of telling whether you will cut it, but there are certain attributes and skills that those who make a successful go at it tend to have in common. To help you answer this simple, yet direct, question, I’ve broken the it down into seven questions.
Please don’t think you must tick every box to make it as a board director. In fact, you don’t even have to tick any boxes. There is not one way to measure your readiness but, if you are leaning towards the “correct” answers on most of the questions below, you’re going to be at an advantage when it comes to being an effective director. Good luck!
Question 1: Do you prefer to work alone or with others?
If you answered the latter, then congratulations, the boardroom could be for you. There is a bit of solo work in being a director (for example, your meeting preparation) but most of it is working as a team. Oh, and don’t expect the team environment to be plain sailing all the time. Hopefully, they’ll bring a diverse set of views and skills and this could lead to some healthy debates. To quote management expert and author Ken Blanchard: “None of us is as smart as all of us.”
Question 2: Do you have time to spare?
I haven’t met many who say they are not “busy”. I’ll admit to using the word. What impresses me are those that aren’t busy, or are trying not to be. This might sound harsh, but busy isn’t a badge of honour.
As a director your time commitment is not just board meetings. Your time includes sub-committees, planning days, networking events, stakeholder representation, training and building relationships.
Every board is different but assume, for a non-executive role, between 5-50 hours per month, with most boards needing an average commitment of 10-20 hours per month. If this is something you can spare, you are ready.
Question 3: Do you like to learn?
True, we are starting to see more and more young board directors but the majority are still senior. They could be forgiven for thinking that they know everything they need to know. Not anymore! We live in non-linear and dynamic times with increasing pressures from many more quarters. As a board director you cannot remain static. Yes, you’ll have skills that you bring to the table and you might even be top of your game. But, you also need to learn new skills to round out your role.
This isn’t just financial skills. Increasingly you need to be across customer-centric design and be up to date on the latest technology impacting your company (and soon your job). What are the latest marketing or HR trends? This makes it easier for you to ask good questions, provide the right level of support and remain relevant.
Question 4: Are you used to getting your own way?
Yes? Then get out of here. The boardroom is not the place for dictators. It is the place for influencers but as part of a team, you’ll often need to put your ego to one side and be open to having your mind changed, or to go with a majority view. There are too many egos in boardrooms, we don’t need anymore.
Question 5: Do difficult decisions impact you?
As a director, the buck stops with you. You must be willing to make tough choices and make decisions.
However, it is a bit of a trick question. If you think no is the best answer, then you perhaps do not care enough to be a director. If it’s yes, then perhaps you don’t have the steel to make the tough choices you’ll have to make. Boards often have to way up competing priorities and stakeholders. You cannot please everyone all the time when “acting in the best interests of the company”.
The ideal answer is “Yes, they impact me, but not for long”. This means you have a nice balance of mental toughness and empathy to handle the burdens of being a director and contributing to decisions that will affect many people. Balance is key. Try not to dwell on decisions, you’ll probably not have the time.
Question 6: Do you prefer to listen or talk?
This is a bit of a trick question. Listening is important as a director. Listening to management and their needs, listening to the views of your fellow directors, listening to the needs of your stakeholders (which extend beyond owners to your staff, customers and community). Yes, listening and analyzing what you hear is vital. But, so is talking. Having a view, when it’s qualified, is your job. Asking the right questions at the right time. Being considered, helpful, challenging yet supportive is the role of a director. Can you “communicate with two ears and one mouth”?
Question 7: Do you take pleasure from helping others?
Simple answer please. Yes! Being a board director is all about being in service to others. You’ll give your time and skills, often for no financial reward. The reward is the service.
Remember though, it’s not just others that gain from you being a director. You do too. You’ll learn new skills that will make you a better person, better employee, better director. You’ll meet new and interesting people and who knows where that will lead. You might get paid but if you don’t you’ll probably earn more elsewhere because of these new skills and relationships.
How did you do? As stated at the start there is no right and wrong way to be a director. There are rules that govern the job. There are also expectations that will vary from board to board.
Paul Smith is the Co-founder & CEO of Future Directors Institute, www.futuredirectors.com.au.