With the latest season of The Apprentice reaching its climax, boardrooms are back in the popular imagination. By the looks on the candidates’ faces, stepping into that room is still as daunting as ever. But even if you are not facing the withering stare of Karren or the irascible Alan, the first time in a boardroom can be nerve racking. If you are joining a board this year, how can you walk in with confidence? In my experience, the importance of the work of the board is both wildly overestimated and wildly underestimated. Boards don't run companies, executives do, but at certain moments of crisis or change, boards are fundamental. Boards are always a work in progress and I have never encountered one that is perfect. One of the challenges of a board is keeping the agenda and discussion at the right strategic level. This can be hard as non-executive directors often bring their own views to the organization. There are multiple ways to help the company as a board member and multiple functions you can perform but getting your own ideas executed is not the most helpful or most likely. When I first joined the board of Channel 4, I was sure that my e-commerce experiences from the dotcom era were going to revolutionize the company’s strategic direction. I imagined that after a couple of board meetings, I would have suggested some technology innovations and seen them implemented within weeks- wasn’t that what I was there for?
Well said. Another key function the Board serves: acting in the interest of ALL shareholders (and stakeholders). Board members need to understand they're not there to build value for the CEO, nor for one or the other shareholders (see: related party transactions!), nor to make positive announcements when stock options are about to vest... but to truly maximize overall value created, in a sustainable way, including for investors who don't have your phone number.
Absolutely on the mark. The Board is part of the team, strategic, supporting and offering guidance to the CEO and management group of the business, also questioning and holding to account.
Well said. Another key function the Board serves: acting in the interest of ALL shareholders (and stakeholders). Board members need to understand they're not there to build value for the CEO, nor for one or the other shareholders (see: related party transactions!), nor to make positive announcements when stock options are about to vest... but to truly maximize overall value created, in a sustainable way, including for investors who don't have your phone number.
Absolutely on the mark. The Board is part of the team, strategic, supporting and offering guidance to the CEO and management group of the business, also questioning and holding to account.