I’ve just been appointed to the board, what now?

Paul Smith- board appointment cravat-Executive-America

At the Future Directors Institute, we help next generation leaders overcome the challenges and obstacles of becoming influential non-executive board directors. This most often starts with the finding (and securing) of their ideal first position, whether that’s on a company board, nonprofit, school, start-up etc.

Assuming you have overcome the most significant challenge, having enough time, we’ve often found that once you achieve this initial goal, there are many new challenges to deal with. It’s also worth noting that time continues to be a challenge, but if you’ve found the time to secure a board role you probably have the time for all the meetings, preparation and other duties of a director.

Based on the experiences of hundreds of younger directors, I’ve compiled the most common challenges new directors are most likely to encounter, as well as how to best overcome them in order to make the transition from board amateur to board influencer.

Figuring out exactly which skills you’ll need

One of the most common questions we find new directors asking is “What kind of skills will I actually need?” This stems from the common belief that before you can join a board, you must have already maximized your skill development. This simply isn’t true.

You don’t need to be at your professional peak to be a great board director. In fact, many effective directors are at the beginning of their career. The likes of Parrys Raines and Holly Ransom are still in their 20s and are both already influential board members. As a new director, you aren’t always required to have an extensive list of skills and specialist achievements. Often, all you need is an open mind, the right level of experience, an eagerness to learn and that all important, unique perspective.

Of course, it is helpful to have a clear idea of the type of technical skills you’ll need. It’s not entirely necessary however, to begin working on them right away. You can build these skills throughout your board career, once you have a more profound understanding of the company’s structure as well as the roles and responsibilities of its board directors.

For example, the most common skills-based question we get is about finance knowledge: “Can I become a board director if I cannot fully understand financial statements?” Again, it depends on the type of organization and what they need from you. While it is your responsibility to be able to govern to the best of your abilities without relying solely on other directors’ skills, the reality is that you cannot know everything—you just need to know enough. You might not need this knowledge immediately, but your aim should be to acquire it quickly.

Whenever you develop the necessary skills, your network and connections will be critical. Make sure to surround yourself with many mentors, perhaps a coach, and others who can assist you in expanding your skills. Enlist their help to get a solid understanding of the structure of the organization, the roles and responsibilities of the directors on the board, and the specific duties you will have to undertake.

Better still, get trained up beforehand.

Finding your voice and becoming influential

It can be uncomfortable when you feel that you lack presence and influence because you’re the newbie in a situation. It’s understandable if you feel apprehension and nervousness when you join a board. Indeed, these feelings can continue deep into a board career. You are not alone, though, and the most confident-sounding person can be hiding a mess of nerves and ‘speaking-up anxiety’.

Fortunately, there are really simple and effective ways of overcoming these feelings. First, remember that you belong there. It sounds stupidly simple, because it is. You have been accepted onto the board, and that gives you an equal voice with everyone in the room regardless of tenure.

Next, be as prepared as possible. This includes getting to know your fellow directors before your first meeting and continuing to build those relationships. You’ll find that your first board meeting will feel a lot less nerve-racking than it might otherwise because you’ve already met a few (if not all) of your colleagues.

NB: If the board is effective and professionally run, it will have a comprehensive onboarding and orientation process that will get you up to speed quickly. If it doesn’t, ensure that you help create one based on your experiences.

The more you know your audience, the more influential and helpful you can be, on both an individual and an organizational level. To learn about your audience on a larger scale, reach out to key company stakeholders such as management, major donors/investors, suppliers, and important customers. You should ensure that doing so doesn’t break any protocols, so check with the chair first.

Depending on the company’s culture, the board and chair may or may not encourage that sort of transparency and integration. If you encounter resistance, it might help to remind the chair that the more you speak to and understand the different stakeholders, the better you can serve and govern them in your board role.

Adjusting your expectations

As a leader holding both executive and non-executive positions simultaneously, you’ll have to get used to switching hats, and often quickly on the same day. If you have been well-trained in the differences between management and governance then this will be a little easier.

It can be hard for even the most practiced to move from being involved at a granular, hierarchal and operational level to providing guidance and oversight at a collective board level. You’ll potentially want to get into the trees when you must keep your view on the forest. The best way is to understand how best to transition.

Allow time to get yourself mentally prepared. Some of our program graduates have a cheat sheet of reminders to ensure they go into a board meeting with their governance hat on. Whatever you need to do, just being aware of which hat you are wearing is a step closer to being a truly effective director.

The other part of expectations management relates to resources. We often see those who have only ever worked for large companies struggling with the lack of operational resources in say the nonprofit that they are a board director for. It’s also the same in reverse and I’ve seen a few joining company boards overwhelmed with what is possible and at their disposal.

When to talk and when to listen

Even after you’ve overcome the first three challenges, it’s important to know when your input is (and is not) needed. This is not about having the confidence to speak up in the first place. It’s about speaking only when you have real value to add.

Knowing when to speak can come from your preparation. Read the necessary papers and conduct all research beforehand so you know what will be discussed. Understand your own point of view and why you have that point of view. With this preparation, you will be able to join in with the proper relevancy and knowledge.

Not only will prior preparation enable you to mix well with your fellow directors, it’ll also get your ideas heard faster and to better effect. Demonstrating that you’re well informed on the topics you’re speaking about will encourage your colleagues to listen to you and respect your opinions. You can further extend your influence by talking to directors outside of board meetings too. Establish yourself as an authority in whatever areas you’re passionate about, and people will pay attention.

However, no board is going to appreciate the input of someone who is clearly talking just to be heard or who is repeating what’s already been discussed by others. So pick your battles, do your research beforehand, and really think about the value of what you’re trying to say. If you are invited to contribute but don’t have anything new to say, just say so. You’ll earn more respect for moving things along and not wasting precious time.

If you’re struggling with knowing how to approach your new position, it can help to consider the board as a family. You have to work on building relationships and trust, getting to know them, and even dealing with any potential dysfunction (because some families are like that!). Remember that you have been recruited because they have seen something in you. If your confidence falters, remind yourself that you have a right to be there, no matter whether you’ve been with them for five minutes or five years.

The most important thing is to be consistent and patient. Take one step at a time and you will find your stride. Work on building a great support network of mentors and teachers around you, and lean on these people for opinions and advice when you’re feeling lost. No one has achieved success alone—all of the most successful people have had supporters around them the whole time.

So, in summary:

  • You deserve to be there. They appointed you.
  • Say it as you see it. Why hold back?
    However, don’t speak unless you have something valuable to add. It’s ok to say; “I have nothing new to add”. You’ll potentially increase your influence if you only speak when you have value to add.
  • Practice being courageous and confident. Take acting classes or practice with your independent board mentors!
  • Be prepared, draw together different issues, and arrive with questions.
  • Manage your expectations and your different executive v non-executive hats.
  • Try testing your ideas in subcommittees or with individual directors.
  • Keep developing your skills in key areas and become known as a trusted source of well-thought out opinion.
  • Learn how to interact with different types of people and get the most out of the relationships. Remember, the board is just a group of humans.

Paul Smith is an author, and founder & CEO of the Future Directors Institute, www.futuredirectors.com.

Are you cut out to be a board director? Ask yourself these 7 questions

CEO_Paul Smith-Executive_America

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.

Is governance training a must have for directors?

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One common belief among people working their way into the boardroom is that they need governance training qualifications. While I don’t want to denigrate governance training courses or those who have qualifications, the notion they are a necessary prerequisite to landing a board role is, quite frankly, untrue. Before we talk about why governance training isn’t strictly necessary for would-be directors, let’s quickly bust myths around this belief.

Many believe that without a formal qualification they’ll be overlooked by boards. However, the reality is boards value expertise and experience over training. Out of our program faculty (all of whom are non-executive directors), fewer than half have governance training; likewise, of the people who go through our programs and land a board role, fewer than 20% have formal governance training.

Another misconception around the need for governance training is that without it you won’t have the financial and legal know-how to be effective. Of course, the need for this in the boardroom is vital, especially as it relates to your duties, but this can be learnt without going through formal training. Also, if you are a new director it’s highly unlikely you are being hired for your governance expertise.

What’s more important than this knowledge and anything you can glean from governance training is your experience, how you work with others and your ability to think independently, question, challenge and be held accountable.

Perhaps the reason that so many people go through governance training is because they believe it will allow them to easily find board work. However, these courses fail to offer advice and tips on how to follow through and land a board role or the soft skills needed to excel once you become a director. We believe it’s important to show people the practical steps they need to follow to land a board role, and the skills they’ll need to succeed.

We encourage directors to include training in their career plan but we also encourage them to educate themselves in a range of topics to be better governors; digital marketing, crisis management and cyber-security. As non-executive directors you will be presented with strategies in these areas and you need to ensure you can assess the risks and opportunities for your company and its stakeholders.

Again, none of this is to say that governance training courses offer no value. They do. It’s just they’ll do little to help you find a director position in the first place. We believe they offer more for people already on a board, being more practical and less theoretical. But before you’ve even set foot into the director space, governance training can be a little abstract.

My advice is to understand what governance training courses can do for you specifically. If you spend time on research and you deem it a necessary step, then by all means go ahead. But if you sign up to a governance training course – even a credible and reputable one – without knowing all the facts, then you may be about to spend a large amount of money on something that doesn’t offer much in return.

Paul Smith is the Co-founder & CEO of Future Directors Institute.