There is a point in an executive’s career where they decide they would love to have the experience of being on a board. What they often find out is the path there is not always straightforward. For those of you not familiar with boards, a board of directors offers crucial oversight and shapes the strategic vision of an organization (it is essentially the independent governing body of a company), and board service provides both personal and professional growth opportunities. Not to mention it is nice recognition for a business leader! However, it is not like you can see these offerings posted on LinkedIn, so how do you become part of this influential group?
Non-Profit vs For Profit
First, let us distinguish between the two types of boards: non-profit and for profit, or corporate. When you serve on a non-profit board, you are donating your time and often some cash to the organization. When I served on the board for StartOut, part of the requirement was a personal contribution and a commitment to help the organization’s initiative to connect LGBTQ+ community with diverse and accomplished investors and industry professionals.
Non-profits want their board members to have passion and connect with both the mission and do outreach to connect other people to the organization. There can be a lot of business development work associated when you are on a non-profit’s board of directors.
I recently spoke with Glen (not his real name) about his experience serving on multiple boards, including non-profit boards, Chambers of Commerce and boards representing industry associations. “Serving on a board is a wonderful way to give back to the community, to share your expertise with an organization that values your fresh perspective. It is also an excellent way to broaden your professional network and grow your leadership skills in ways that might not be possible within your own organization,” said Glen.
When you are on a for profit board, they pay you, and it can be a significant amount for larger companies. You will attend meetings based on the company’s timeline and goals. You have legal responsibilities to the company and must follow board guidelines as you will be privy to inside information.
But there’s also risk involved. Shareholders can sue board members for breaching their fiduciary responsibilities, with damages sometimes reaching millions of dollars. While companies often provide liability insurance for board members, it is not a sure bet, especially in cases where the company goes bankrupt.
Board Governance Know How
Most people tend to first serve on non-profit boards to gain valuable experience and become familiar with board governance. That is the framework of rules, processes, structures, and practices that guide how a board operates. There are training programs available as well as courses to take to get you up to speed. Northwestern University’s Kellogg Executive Education offers an in-person course in Chicago (they also have an insightful webinar about becoming “board-ready”), but there are also online options available with other education providers.
Do Your Homework
Individuals who seek a seat on a board are giving keynote speeches at conferences, participating in industry panel discussions, being involved in their community, and eventually being recommended by mentors, C-suite players, or top consulting firms.
Researching a company’s board of directors will allow you to assess the qualifications of current board members to see if they align with your own. Additionally, you might discover if any board members are nearing retirement or if there are skill gaps on the board that your abilities could fill.
“Always start by researching the organization – learning about their mission, vision, and values – and determining if these align with your own values and priorities. Sometimes it takes a while to be considered for a board, so it’s often worthwhile to volunteer with the organization, either for an event or a committee. Then, if you are selected to serve on a board, carve out time to meet with either the board chair or the head of the organization to learn more about expectations for board members. It can also be helpful to ask for a mentor on the board, someone more experienced who can show you the ropes,” Glen said.
Some boards are very rigorous in their vetting, recruitment and interviewing process. There can be multiple interviews and meetings with the search committee and other board members.
Find the Fit for You
It is important to be realistic in your expectations. It can take time to be offered a seat on a board, and if you do not have experience, that period could stretch to several years. If that is your end goal, you should already be thinking strategically about how you can build the connections, get the experience you need, and make choices with that goal in mind as you are developing your career.
People sometimes have unreasonable expectations. If you want to serve on the board of Microsoft, you may need to rethink your strategy. But high-profile boards are just a fraction of the available opportunities. Consider private-equity boards, startup boards and family-business boards. Your first board opportunity could lead to many others!
Glen shares advice for finding the right fit. “First, I would recommend giving some thought to the reason you want to join a board: is it to help the community, expand your network, develop connections to grow your business? And then, try to align potential board service with your personal passions. If you are enthusiastic about literacy, consider joining a board that focuses on youth and education. If your priority is growing your business, getting involved in a Chamber of Commerce might be more effective,” said Glen.
Evaluate the Role
Board members play a crucial role in shaping a company or organization. They hire and fire the CEO, regularly evaluate the CEO’s performance, and set priorities for the company’s operations and issues. Board members should also stay informed about industry trends and be well-versed in key financial matters.
Different boards require different time requirements – it can vary from 200 hours a year to 20-plus hours a week for boards of companies undergoing crises, and you should commit to serve at least five years. Do your due diligence and ask for meeting minutes and have a solid understanding of what you are signing up for.
“Before joining a board, a leader should understand the time commitment required of board members – not just for the board meetings, but for preparation, events, and committee work. Some boards also require a financial commitment from their board members, so you will want to know that on the front end. Finally, you will want to make sure the organization shares the same values as you so that board service is a good fit and more rewarding,” said Glen.
Some boards also make personal requests. Early on in my financial career, I was asked to be on the board of directors for Human Rights Campaign. I was honored to be considered for such a worthwhile organization, but the timing was not right. I was recruited because I was a successful gay woman working as a trader in the finance industry, which was rare back then. But accepting the position would have required me to come out, and I was not comfortable with the risk. I was worried about losing my job, and to this day, not being willing to publicly “come out” in order to have the opportunity to serve on that board is a professional regret.
Clear it with your Company
I was afraid to do so then, but it is important to get approval from your company before you start to pursue opportunities. If you are retired or self-employed, this is not a concern, but otherwise, you need to bring this conversation to your CEO. Give examples of how serving on a board will develop you as a professional, which in turn will benefit the organization.
Glen says his work on boards of directors has elevated his leadership. “In my professional role, I have primarily led small teams of direct reports, so I do not have as much experience with difficult HR issues as leaders who supervise large teams. However, I have had the opportunity to serve as the chair for several boards of directors. In these roles, the head of the organization reported to me, so that has provided a lot more experience with hiring, firing, leadership coaching and developing that I do not always get in my day job,” said Glen.
It’s Really a Job Interview
When I coach clients who are seeking positions on a board of directors, we treat it as if it is a job interview. We discuss their professional experience as well as extracurricular activities that make them a strong candidate.
But one difference between a board interview and a job interview is that you should not focus only on your qualifications. You have landed the interview, so they know you are qualified for the role. Be detailed in how you will collaborate and complement current board members, bringing something unique to the table.
You generally do not target a specific company’s board but rather an industry or area of interest for you. I recommend people join high-level networking groups and let people who are currently on boards know you are interested in board work. Increase your presence in your marketplace for exposure. You want to be known in your field and in your community. Just like when you are searching for a job, it is all about connections and the people you know. People are referred to corporate board positions by word of mouth. Think about who can vouch for you and the reach those people have.
Instead of a resume, you will want to have what is called a board bio. The difference between the two is that a board bio does not list and describe everything you have done in your career. Instead, it focuses on what you can bring to the table for this board. It is usually just one page and is tailored to the specific opportunity. Remember that the skills needed to be an attractive board member can differ from those required to be a strong executive. If you need help writing your board bio, it is a service we offer in addition to our professional resume writing here at JMA.
Be Wary of Snake Oil
I have had clients over the years tell me they have engaged the services of platforms that claim to match board opportunities with candidates. Not one of those ten clients got a board position or even a board interview because of paying to be on these platforms and none of them would do it again. My experience is a small subset, but I have not seen this be an effective way to reach your goals. If that is not your experience, and you have had success with a company who in some effective way facilitates board introductions and opportunities, please let me know. This is a frequent request of my executive coaching clients.
Overall, the path to the boardroom can be a strategic and rewarding journey but it’s one that requires careful planning, dedication, and a clear understanding of both personal and professional goals. By gaining experience through non-profit boards, staying informed on industry trends, and building a strong network, aspiring board members can position themselves for success. It is essential to do thorough research, understand the responsibilities and risks, and align with organizations that share your values. Ultimately, serving on a board offers a unique opportunity to contribute to an organization’s success, grow as a leader, and make a meaningful impact in the community or industry.
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