What Makes a Successful Board Member

management governance

A board member who is successful takes their role seriously, and makes a significant contribution. They need to be able to take difficult decisions, think strategically and keep the big vision in mind while giving their unique viewpoint based on personal experiences. A well-run board of directors will help the company achieve its mission and goals by providing guidance and supervision. They will be motivated to see the organization thrive and are not afraid to voice their opinions.

While having an abundance of connections is crucial organisations should focus on recruiting people who care deeply about the cause and are willing to commit their time. It is also important to ensure that your board members have the right capabilities. According to Institutional Shareholder Services, the boards of Enron, Kmart, and the ailing retailer Warnaco all had board members who had a wide range of financial skills and knowledge–including former Stanford deans who were accounting professors, a prominent Asian financier, and the former head of the U.S. government’s Commodity Futures Trading Commission. But these credentials were not enough to stop the companies from falling.

In the same way, regular attendance at meetings is frequently regarded as a sign of conscientious board members. As Stanford GSB adjunct faculty of corporate governance Nell Minow explains, this measure does not distinguish between boards that are good and bad. In fact attendance records for boards of GE (which was featured on Fortune’s list of 2001’s most loved companies) and WorldCom are similar.