This piece originally appeared in Private Company Director.
What process do you use when determining if you should spend time interviewing for a board role? Do you consider how best to invest your time? How about the interviewer's time? Do you always interview, no matter the company, location or compensation?
Here are a few questions I ask, having been contacted about or served on more than a few dozen boards! The next time you're contacted about a board role, you may find it helpful to use them as a guide to help to determine your response.
First, how do I honestly feel about the company's brands/products or services? Are they of interest or exciting? Do I use them? What value do the products bring to customers? Are they well made? Does the quality correlate with price points? If you aren't interested in the products, you won't be intellectually challenged by the company. When you're honest with yourself, you will know the answer to this first and most important question.
Second, can I truly add value to the company as a board member? Be brutally honest. If your answer is “No” or “I don't know,” don't waste your time or the interviewer's time on an initial call or Zoom.
If you want to “be on a board,” without regard to the first two questions, stop now. You have much work to do in assessing why you want to be on a board and, most importantly, how you can add value. The desire to “be on a board” seems to be trendy as evidenced by a recent appointment at my dermatologist, who asked me to help get him on a board. It was an uncomfortable situation, given he operated a tool that created pain for me! While he has a profitable practice, board members need more than career and financial success. Deep managerial, team leadership and strategic experience are musts.
If your answers to the first and second questions are “Yes,” what else should you be thinking about as you move forward with interviews? My ABCs (and a D) are:
A: What's truly great about the company's leadership, board and culture? Do I respect the management team? What about the experiences of current board members? If family-held, how involved are the shareholders? Do I respect them? Do they add value? How do independent board members speak about family board members and/or shareholders? Do the company's values and culture match mine? A corollary question is “What's not so great?” The answers will help you identify areas for further scrutiny as you move forward with more interviews.
B: What specific value can I bring to the board and company? Does the company need your deep functional expertise? For example, if you have extensive M&A experience, can you help the company refine its M&A strategy? Is the company in need of turnaround expertise? Do you bring decades of industry experience to the company's strategy? As a watch-out, when you've “seen it all,” it can sometimes be too easy to dismiss an idea because it didn't work however many years ago. For example, I've spent much of my life in the beverage world (an exec at PepsiCo and a board member for a Coca-Cola bottler), but since consumer wants and needs continually change, I do my best to not over rely on previous experiences.
C: How does the company enhance your skill set, your brand and your reputation? I was recently asked to consider a board role for a large cigarette company. The organization had strategies to diversify its product line but had a long way to go. It was an easy “No.” I've never smoked and don't believe in it. It would have been impossible for me to add value to a board discussion or decision.
D: How does the interview process feel? What does your “gut” say? Are you having conversations or only answering questions? Recently, I met with a governance chair who sparked my interest in a board role. Then, I met with the entire committee. One member fired questions, including one not related to my background or to the company. One of her questions was quite subjective, as was my answer. This director kept pressing me for a specific metric, well beyond what seemed reasonable. At that point, I knew I was not interested. While the company's brands were excellent, I did not want to work with a director whose ego prevented them from being a good listener. Imagine how unproductive the discussions in this boardroom must be.
Additional Considerations
There are a few other, less important factors to consider as you move forward with board interviews.
Geography/location. How long might it take you to get to a meeting? How tough of a trip? Multiple flights or an easy drive? Do you like where you'll go? It's not a vacation, but if you don't find the destination appealing, then why do it?
A Paris-based company sounds delightful, but do you quickly adjust to time zone differences? Don't select a board because you love its location. As a director, we all have the financial wherewithal to afford vacations. If you want to go to Paris, go.
Do you like the culture of the region where the company is headquartered? A surprise for me was how much of a difference a headquarters area can make. I said “Yes” to a board role, then became increasingly uncomfortable with the undue influence its headquarters location had on the company's overall desire and ability to grow.
Compensation. For private companies, the range is quite wide. Key questions is “Is it fair given your expertise?” That fairness should also extend to time commitments and travel difficulty. A board I serve on is not in a convenient location. This is well recognized, and compensation incorporates travel days.
The next time you are contacted about a board search, consider what process and questions work best for you. Take the time to learn how you can be a great director for the company. But equally important is how a board can be great for you!