Wanted: Board Members

I am sensing a growing chasm between the supply and demand for quality board members. Sure, I understand it’s a risky job without a lot of financial reward. But businesspeople are attracted to taking calculated risks, aren’t we? And, in my opinion, those of us who have been fortunate enough to accumulate knowledge and experience have a duty to the business community at large to give back. It’s simply the rent we pay for the space we occupy here on earth.

Of the various roles I’ve had in my career, being a board member has been the greatest privilege of them all. I have served on more than three dozen boards of directors—for small entrepreneurial companies, multibillion- dollar companies, for-profit and nonprofit organizations—and served as chairman for about half of those boards. In each and every case, it was my honor to serve the shareholders and stakeholders of those organizations, and I sincerely hope that they believe they are better off for having had me serve on their boards.

I’ve earned every one of my gray hairs for a reason, and if I don’t share the experience I’ve gained along the way, it will have been for naught (which is why I write this column each month, by the way). For as Publilius Syrus, a Roman writer who lived in the first century B.C., said, "From the errors of others, a wise man corrects his own."

So, my fellow executives, throw away your security bankies, and realize that you have a lot to contribute through board service. The business community needs your help. It may be scary, and the boogie man may get you if you don’t do it right, but helping a company move forward in our highly competitive, globalized business world is very gratifying.

Nonprofits need our help as well. Some of my most gratifying board work has been for nonprofit organizations where I didn’t get paid a single cent. I got overpaid, though, in the gratification of knowing that I contributed to saving children’s lives and making them healthier, helping women to get out of abusive relationships, and giving the community access to visual and performing arts.

Whether you’ve already been a board member for many years or are still trying to figure out the difference between "old" business and "new" business, joining the National Association of Corporate Directors is beneficial. Their publications, seminars, and meetings provide valuable information and training about corporate governance issues. They also offer a two-day course on director professionalism, which covers the basics of corporate governance roles and responsibilities, fiduciary duties, financial acumen, committee roles, risk-oversight issues, and regulatory requirements.

You shouldn’t have to take a course to realize, though, that if you are a director you should exhibit certain characteristics. These include independence from the company’s management team, the capacity for objective judgment, and a serious commitment to shareholder value. Snoring though board meetings is not acceptable, nor is showing up at meetings unprepared, or expecting them to be a social event, or treating them as on-the-job training.

Of particular importance is the ability to effectively manage a potential crisis. You must be able to make difficult decisions quickly and not suffer from analysis paralysis, and be prepared to handle tough situations, such as firing executives and implementing divestitures or major layoffs. First-class directors are serious about their responsibilities, committed, engaged, and willing to sacrifice the time and energy required to do the best job they can do. They ask the tough questions that make management uncomfortable. They insist on measuring performance and progress relative to the company’s strategic plan, goals, and objectives, and they routinely evaluate external opportunities and threats.

If nothing I’ve written so far has resonated with you and increased your motivation to serve, let me appeal to your human selfishness: Consider your legacy. When it comes time to hang up your laptop and BlackBerry, people will either say you were a successful businessperson who made a lot of money, or they’ll say you were successful and selflessly gave back to business and your local community. It’s your choice.