How to Become a Board Member
“So, how do I become a board member?”
If only you knew how many times I have heard this question. Young professionals, mid-career experts and retired seasoned mangers ask me how one can join a board. We have yet to learn from experienced board pros on how they landed their first board seat. In the meantime, here are three tactics that worked for my friends and me.
Ask!
One simple yet powerful technique that we should apply more often is asking for what we want. When was the last time you approached a company and offered to serve on its board? Probably, never. We all assume that companies should reach out to us begging to join their boards. Guess what, that rarely if ever happens to those with no previous exposure to boards. So go out there and spread the word about your desire to be in a board and do your best to serve the company. Do not limit it only to mentioning it under the “Opportunities you are looking for” on your LinkedIn profile. Let your friends, colleagues, professional network and classmates know about it. Reach out to contacts from your target companies, get acquainted and let them know how you could add value if you were on the board. Does it mean that you will immediately secure a board seat? Of course not, and you will have to swallow a lot of “No”s at first. However, it will triple your chances and will eventually get you there.
Before I moved to the US, I had numerous offers to join corporate boards coming my way all the time. That was thanks to my corporate governance experience and constant contact with companies that I consulted with on board matters. Although I never could accept an offer to join a corporate board because of my job restrictions, generating those offers was not a problem in my home country. Now that I have moved to the US, I am ready to start all over and ASK. Whenever I meet professionals, my school alumni or make new friends, I let them know that I look forward to joining a board and what skills I can bring to the company.
Show Up
Some time ago, I received a call from a brokerage company asking me to recommend a candidate to one of their board committees. After listening to what they were looking for in a candidate, it took me less than a minute to come up with a name. The woman I recommended was an owner of a successful boutique-consulting firm. She was intelligent and well-regarded, but most importantly she was out there showing up at events and social media platforms where professionals could meet, interact and get to know her. Were there any better and more skilled candidates to recommend for that board position? Maybe. However, the problem is that I have never heard about them. Unfortunately, there are many brilliant minds that have a lot to contribute, but never get a chance because they prefer to keep a low profile and do not show up where opportunities are abundant.
“Showing up” means being proactive and letting people know what great knowledge and skills you have. Join LinkedIn board groups (Board of Directors Society Group is a great group to start with) and initiate discussions. Write an article drawing upon your background and expertise better yet, start a blog. Attend conferences and offer to speak publicly. While this may sound like a lot of time commitment, you will soon discover that this investment will return a high yield in board opportunities and more.
Be Prepared
Education, work experience and network can get a person into a board, but once there a director will realize he needs a completely new set of skills. Board membership requires mastering some distinct topics to be an efficient director. If you can do your homework, study upfront and then demonstrate that you have those important skills you will gain significant competitive advantage.
So, what are the three important knowledge areas to get a grasp of?
- Strategy. A board is a strategic body. Understanding how the company develops and executes a corporate strategy is a tremendous plus to your knowledge base. While there are plenty of books and web-resources to tap into, I would suggest you study business cases to understand practical application of the concept.
- Financial literacy. Board members have to be able to read and understand financial statements and auditors reports. Unless you have an accounting or finance degree, you may want to start with a basic 101 course on corporate financials.
- Internal control and compliance. OK, this a tough one. Every company needs control procedures to prevent fraud and operate efficiently. Companies also have to follow laws and industry standards. Read and grasp the fundamentals of the subject, then move to real-life examples to discover how other companies dealt with it.
(Stay tuned, we will explore each topic in detail in future posts.)
So, if you still want to be a board pro, roll up your sleeves and start working on your board game-plan.