{"id":4157,"date":"2020-03-06T10:31:06","date_gmt":"2020-03-06T10:31:06","guid":{"rendered":"https:\/\/lgca.uk\/?p=4157"},"modified":"2020-04-13T09:18:00","modified_gmt":"2020-04-13T09:18:00","slug":"becoming-a-more-effective-director-and-board-member","status":"publish","type":"post","link":"https:\/\/lgca.uk\/el\/becoming-a-more-effective-director-and-board-member\/","title":{"rendered":"Becoming a More Effective Director and Board Member"},"content":{"rendered":"

Becoming a More Effective Director and Board Member<\/strong><\/p>\n\n\n\n

The role of a company\u2019s board of directors has never been as important as it is today.<\/em><\/p>\n\n\n\n

In a rapidly changing market defined by\nexpanding regulatory responsibilities, accelerated technological advancements\nand ultra-aggressive competition, it has become paramount for members of a\ncompany\u2019s board of directors to think strategically, be flexible enough to\nadapt to change, and act proactively to guarantee success for their firms.<\/p>\n\n\n\n

With this in mind, what are some of our main tips for board members or budding directors looking to effectively lead their organisations into the next decade.<\/p>\n\n\n\n

1. Let\u2019s review our top 3 tips Understand Your Company\u2019s Culture, Mission, Goals and Expectations<\/strong><\/p>\n\n\n\n

It might sound\nobvious, but board members should have an in-depth understanding of their\ncompany\u2019s mission, goals, corporate culture and overall expectations.<\/p>\n\n\n\n

As explained by\nKarima Mariama-Arthur, Founder and CEO of WordSmithRapport, in an article for\nEntrepreneur, all board members must be equipped with certain knowledge that\nwill allow them to perform at their peak.<\/p>\n\n\n\n

First,\nall board members should know what their main responsibilities are.\nMariama-Arthur writes<\/a> that all directors \u201cshould know what is\ngenerally expected of the collective\u201d and \u201calso know what is expected of them\nindividually.\u201d<\/p>\n\n\n\n

Second,\nMariama-Arthur explains<\/a> that directors \u201cneed to know where an\norganization wants to go in order to help it get there.\u201d Therefore, board\nmembers must have a complete understanding of the company\u2019s overall mission,\nits short, medium and long-term plans, and how it expects to accomplish what it\nhas set out to do.<\/p>\n\n\n\n

In\nturn, board members must be ready to contribute<\/a> their\nown ideas and \u201cadd value by illuminating their voices and actively\ncollaborating to move the collective vision forward.\u201d<\/p>\n\n\n\n

Finally, board\nmembers should have thorough knowledge of the company\u2019s corporate culture.<\/p>\n\n\n\n

Mariama-Arthur says<\/a> board\nmembers should understand how a company\u2019s \u201cvalues and norms drive interpersonal\ninteraction and everyday decision-making,\u201d and see \u201cfirst-hand how employees\ninteract with one another, as well as with its stakeholders.\u201d<\/p>\n\n\n\n

\u201cIt\u2019s essential\nfor new members to be privy to the traditions, values, and policies that speak\nto an organization\u2019s wellbeing,\u201d Mariam-Arthur concludes<\/a>.<\/p>\n\n\n\n

Paul Nelson, a Senior\nManager with Babcock International Group, would add one more item to this\nlist\u2014having a solid understanding of the numbers.<\/p>\n\n\n\n

Nelson,\nwho\u2019s attended courses offered by the IoD Academy, believes<\/a> \u201cfinance is clearly a key driver\u201d towards\nan individual\u2019s growth as an efficient board member.<\/p>\n\n\n\n

\u201cHaving an understanding of how the business operates and the financial decision-making behind it is a key part of that growth,\u201d Nelson says<\/a>.<\/p>\n\n\n\n

2. Communicate Often and Extensively with the CEO, Management and Other Board Members<\/strong><\/p>\n\n\n\n

According to Mark\nSuster, a successful American entrepreneur-turned-venture-capitalist,\ncommunication is primordial to being an effective board member.<\/p>\n\n\n\n

On\nhis blog, Both Sides of the Table<\/a>, Suster emphasizes the need for\nboard members to hold discussions with other board members and the CEO prior to\nentering a board meeting where decisions will be made.<\/p>\n\n\n\n

Suster writes<\/a>: \u201cIf a conversation happens between the CEO and\neach director then each side knows what we\u2019re trying to achieve with the\nin-person meeting.  We can agree mutual concerns, we can agree scope, we\ncan discuss controversial topics and the director can let you know if he\/she\nfeels something is missing from the agenda. A director who hasn\u2019t had a\npre-conversation with management will not be as effective in the board\nmeeting.\u201d<\/p>\n\n\n\n

In the same vein,\nSuster believes non-management board members should have a strong working\nrelationship, one that will allow for easier decision-making and problem\nsolving.<\/p>\n\n\n\n

Suster believes<\/a> \u201cthe best functioning boards are groups\nof individuals who all know and trust each other \u2014 even if they don\u2019t\nnecessarily agree on every topic.\u201d<\/p>\n\n\n\n

\u201cBy\nbuilding \u2018outside the board meeting\u2019 relationships I find that I can more\neasily resolve difficult issues when they arise,\u201d Suster concludes<\/a>.<\/p>\n\n\n\n

Ultimately, Suster\nsays, most of the work happens outside the boardroom during interactions\nbetween a company\u2019s CEO, extended management team and its board members.<\/p>\n\n\n\n

Suster explains<\/a>: \u201cIf you think about the span of a 5+ year\nboard working with a company you begin to realize that a board meeting isn\u2019t\nthe real value driver so much as what happens outside of the board meeting. A\nboard meeting should be the place where we take the legal decisions we have\nalready discussed and debated as a group.\u201d<\/p>\n\n\n\n

3. Become a Certified Director or Join a Relevant Professional Organization<\/strong><\/p>\n\n\n\n

Knowledge is King.\nHence, any board member will significantly benefit from continuing their\neducation and training on how to best lead their organization from a position\nof power.<\/p>\n\n\n\n

Certain\nindividuals in leadership roles would benefit greatly from joining a relevant\nprofessional organization like the Institute of Directors (IoD)<\/em>.\nHere, members have access to countless networking opportunities, seminars,\nworkshops and conferences, a wealth of business information, and a platform\nwhere to exchange ideas and perspectives with likeminded leaders.<\/p>\n\n\n\n

The IoD offers a\nprofessional qualification pathway to allow candidates acquire a Certificate, a\nDiploma and ultimately a Chartered qualification in Company Direction.<\/p>\n\n\n\n

As\nbrilliantly summarized<\/a> by Steve Giles, one of IoD\u2019s Course\nLeaders, \u201cThere is a growing understanding that if we want to be more\nprofessional in our business lives, part of that involves a commitment to\ncontinuing our education. To be credible as a business leader you\u2019ve got to be\nup to date, and you\u2019ve got to keep abreast of modern thinking.\u201d<\/p>","protected":false},"excerpt":{"rendered":"

Becoming a More Effective Director and Board Member The role of a company\u2019s board of directors has never been as important as it is today. In a rapidly changing market defined by expanding regulatory responsibilities, accelerated technological advancements and ultra-aggressive competition, it has become paramount for members of a company\u2019s board of directors to think […]<\/p>","protected":false},"author":1,"featured_media":4827,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","inline_featured_image":false},"categories":[55],"tags":[78,85,77,83,80,79,84,82,81],"_links":{"self":[{"href":"https:\/\/lgca.uk\/el\/wp-json\/wp\/v2\/posts\/4157"}],"collection":[{"href":"https:\/\/lgca.uk\/el\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lgca.uk\/el\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lgca.uk\/el\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/lgca.uk\/el\/wp-json\/wp\/v2\/comments?post=4157"}],"version-history":[{"count":0,"href":"https:\/\/lgca.uk\/el\/wp-json\/wp\/v2\/posts\/4157\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/lgca.uk\/el\/wp-json\/wp\/v2\/media\/4827"}],"wp:attachment":[{"href":"https:\/\/lgca.uk\/el\/wp-json\/wp\/v2\/media?parent=4157"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lgca.uk\/el\/wp-json\/wp\/v2\/categories?post=4157"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lgca.uk\/el\/wp-json\/wp\/v2\/tags?post=4157"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}