A board member who is successful takes their role seriously, and makes a meaningful contribution. They must be able to make difficult decisions, think strategically and keep the bigger picture in mind, all while giving their unique perspective based upon their personal experience. A competent board of directors will help the organization achieve its goals and mission by offering guidance and oversight. They will be driven to see the business flourish and are not afraid to voice their opinions.
While having a lot of connections is crucial for organizations however, they should also focus on attracting people who are dedicated to the cause and willing to commit their time. It’s also necessary to https://boardcontest.com/ ensure your board members possess the necessary skills. According to Institutional Shareholder Services the boards of Enron and Kmart and the ailing retailer Warnaco had a variety financial competencies and expertise. They included former Stanford deans and accounting professors as well as a well-known Asian financier and the former head the U.S. Government’s Commodity Futures Trading Commission. However these credentials weren’t enough to prevent the company from falling.
Likewise regular attendance at meetings is often thought to be a sign of shrewd board members. But as Stanford GSB adjunct professor of corporate governance Nell Minow points out, this measure by itself doesn’t differentiate boards that are good from bad. In fact attendance records of the boards of GE (which was included on Fortune’s list of 2001’s most popular companies) and WorldCom are similar.
