CEO Stories: Beverly Behan, Board Advisor.Net

FROM COUNTRY CLUB TO ACCOUNTABILITY

Corporate boards have evolved significantly in the last 20 years, from the time when directors often served on multiple boards and might have been picked for marquee value rather than industry-specific knowledge or subject-matter expertise. Now companies are looking for directors to add value for all stakeholders, including employees. And the composition of boards is key to their success – in terms of expertise and increasingly, diversity.

ROLE OF DIRECTORS

Directors need to understand their ability to add value also depends on their ability to have power and influence in the boardroom itself. That comes from understanding that governance is a team sport, and that board members have two primary roles: watchdog and sounding board. It’s also critical that board members, who are often accustomed to having great authority at the companies at which they worked, understand that they are there to govern, not to manage.

DEVELOPING BOARDROOM STARS

The drive to increase the number of diverse board members is a unique opportunity not only for companies, but for this new group of directors to wield influence from the get-go. One method for maximizing the success of new board members is to pair them with more experienced board directors, who can help them understand the nuances of the company and the board. And for the new directors, Behan advises there is no substitute for work ethic: learning the business and being prepared for board meetings. While Behan acknowledges such basics are “not sexy,” they’re often overlooked and critical for new members to make their mark early.