Return to Summer 2007 Acredula Index
Attributes of Quality Board Members
What to Look for in Your Board
John F. Dix
President, Business Development Index
Reprinted from Acredula -- Summer 2007
As the owner of a private company, you have
formed and invested in a board of advisors or
board of directors to bring value to the company.
As they each contribute their own unique set of
attributes to their board participation, using and
leveraging these talents helps multiply the return
to the company.
Years of participating on the boards of private and
public companies have made it clear that certain
attributes of outside board members are important
to achieving the purpose of a productive and effective
board of directors.
This series of articles will consider and describe
some of those attributes. As you consider the composition
of your board, these articles are meant to
provide you with thoughtful insight for enhancing
the performance of the board.
The third article in this series will discuss
the attribute of
AVAILABILITY OFF LINE.
Availability off line begins with a clear understanding
leading up to the engagement of a board
member. In an ideal situation, board members are
provided with a job description and are paid in a
combination of both a retainer and a meeting fee.
The retainer portion is positioned in part with
an understanding that the board member will be
available off line for informal communications
and meetings of an abbreviated nature. For example:
phone discussions of financial statements
in between board meetings; a breakfast or lunch to
discuss a critical contract; or a mentoring breakfast
with a key manager.
Board member availability off line provides a
mechanism for informal communications and
meetings as key issues arise. Respectful use of
between meeting communication and interaction
provides both the company and the board member
a convenient way to stay abreast of current
or critical issues. This process further facilitates
the productivity of regularly scheduled meetings
because both the company and the board member
remain current on important issues.
Following are some productive and useful ways to
consider utilizing board members between regularly
scheduled meetings:
Board members with market or key customer
access can provide introductions at top-to-top
levels creating an atmosphere of cooperation
and mutual benefit with customers.
Board members with unique technical knowledge
can be useful in both access to and
interaction with key suppliers.
Using board members to act as mentors for key
managers or succession candidates provides
another point of view in evaluating their progress
and performance when considering succession
or reorganization.
Discussing strategic questions or opportunities
with board members between formal board
meetings helps to clarify and prioritize those
issues prior to formally discussing, accepting
or rejecting them at a board meeting.
Board members can often be utilized productively
to enhance the company’s reputation
and visibility through established political and
community relationships.
Interviewing potential candidates
for key management
positions is another valuable off
line use of board members.
Effectively utilizing board members
off line is most successful
when the expectation is agreed to
during their recruitment process.
Developing clear, simple, written
job descriptions is a useful tool in
both the recruitment phase and the
evaluation phase of outside directors.
Clarifying the expectations
makes implementation and, ultimately, satisfaction
for both the board member and the company more
of a certainty.
Experience indicates that well-engaged board
members are more valuable and productive for the
company. It also suggests that such board members
look forward to off line involvement as a way of
being part of the process of moving the company
toward its goals. As long as off line time is used
in a way respectful of a board member’s time, it
works to everyone’s benefit.
John F. Dix is president of Business Development
Index, Columbus, Ohio, and is a member of numerous
boards in the US and Canada.
