Skill Set: Success. There is no diversity.
Dear Friends of Trewstar:
I recently attended the Stanford Law School Director’s College. I was last there circa 2013. The experience was thoroughly enjoyable on many levels. Top of the list was the weather. It was wonderful to have so many sessions outdoors. Tied for first was the chance to see so many colleagues and friends “IRL.” For instance, Eric Branderiz, whom we placed on the boards of Fortive and Cognizant. (He also serves on a private company board with Beth Vanderslice.) I had previously met him exclusively on Zoom calls. When I said, “Eric, you are taller than I expected,” he replied, “Beth, you look younger than I expected.” Ha!
The conference was educational as it related to AI, cyber-attacks, Supreme Court decisions, heightened geopolitical risk and more. In contrast, it was interesting, though obviously no fault of Stanford’s, how little has changed on the broad topic of board composition. Panels of experienced directors are still uttering the same well-intentioned, but tired talk about the need for more skill set diversity, more effective board assessments, the reluctance to conduct individual director evaluations, and so on.
This proved a catalyst for discussions around what is not mentioned about the reality of corporate boards. One thought stuck with me, and it is so obvious:
“Corporate boards are like All-Star teams. Everyone is a superstar.”
Perhaps therein lies a fundamental issue we are all overlooking. In every other work (and sports) setting, there exists a hierarchy. Senior people manage junior people. Coaches direct athletes. In boardrooms, the hierarchy is largely administrative. Board chairs or lead directors set the agenda and act as a communications conduit. But they aren’t bosses. They may be selected for their seniority or wisdom, but they only have one vote, just like everyone else. They rarely exert direct influence over fellow board members, including on hiring and firing decisions. It’s more of an exercise in cajoling and consensus building, which take many paths en route to a decision. It can also lead to indecision and the perpetuation of governance problems. Considered in this light, it is surprising that boards function at all.
So, what can you – and your fellow directors – do to improve the experience for yourselves, the management team, and the people both groups serve: the shareholders?
Here are our suggestions:
- View the board as a team that is meant to collaborate with one another and with the management team. One way to cultivate that team culture is to use the word ‘team.’ “I’m so glad to be on a team with you”; “Ok, team, let’s switch topics”; “I think our team could benefit from more tech experience.” You will be amazed by the results.
- Acknowledge that while fellow board members may have different skills, corporate experiences, skin color or gender in one important way they are just like you - extremely accomplished in their world. “Not successful” is never a selection criterion for a new board member.
- Examine your own purpose and that of the organization. You might be there to hobnob and/or make money, but you also need to be dedicated to service and aligned with what the company brings to the world. If not, it’s probably not the right place for you. You will help the team by moving on.
- What was accepted practice some years ago, or in a different industry, may be old news in your boardroom today. Stay in learning mode by seeking out additional reading materials, in-person meetings with management and relevant conferences. You need to be a young/middle-aged/old dog who is pleased to be learning new tricks.
- Build trusted relationships with your board colleagues and the management team. Factor in extra time when making travel arrangements. Rather than dashing for the airport, build in a buffer for meetings to run over or for relaxed conversations with colleagues. Prioritize socializing with fellow directors outside of formal meetings. Travel to dine with or attend events with director colleagues.
- Stay focused: Deposit cell phones outside the boardroom and schedule periodic phone breaks so directors can check for messages. Use iPads only for viewing board materials. Keep cameras on during Zoom calls.
- Encourage the CEO to develop a trusted relationship with the board by meeting one-on-one with each board member on a regular cadence. This also allows each board member to deepen his/her understanding of the company’s short- and long-term challenges in a personalized setting.
- Understand that serving as a highly skilled director requires patience. Patience is listening versus talking. Patience is looking for the right opening to make your point. Patience is thoughtfully explaining a point of view. What is evidence of a lack of patience? Interrupting. Leaving early. Skimming board materials instead of reading them (which is also demoralizing to the management team).
- Practice the way you offer comments: not too long (think in terms of 30-45 seconds per comment), not repetitive (don’t say it again if you said it at the last four board meetings or just a moment ago).
- Strive to create and maintain a culture where candid conversations with everyone participating allow the board as a team to take on the brutal truth in the worst moments, and grapple with a diverse range of topics when all is going well.
These suggestions come from Trewstar. Many are grounded in an excellent piece by some of my friends at Stanford Women on Boards. Their work fleshes out these ideas and contains a fantastic measurement tool. While still in draft form, we are able to share a link: The Personal Roadmap: Attributes of Outstanding Board Members. If you are short on time, start on page 17 with questions that will help you see where you are on the spectrum.
If you have additional suggestions or anonymous war stories you would like to share, we are perpetually in learning mode, so send them our way!
Best Regards,
Beth Stewart & The Trewstar Team
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