Your The role of Non-Executive Directors (NEDs) in business growth is crucial. The boardroom should be an exciting amalgamation of strategy-focused ideas that drive the business to succeed. Certain types of people who can contribute to the company’s progression in this way should make up the boardroom.
Common Failures in the Boardroom
One of the top reasons companies fail is due to the dysfunctional mix of people around the table. This occurs for several reasons, including:
- Elevation to the board has come about due to family connections rather than skills
- Individuals being promoted beyond their abilities
- Recruitment has not been robust enough
- The company itself has outgrown the skillset of the board
- The directors have not been properly trained and supported
Diversity in the Boardroom
Diversity in the boardroom is paramount to diversifying a company, both in thought and perspective and in a demographic sense. A successful board is created when the boardroom is a place of variety with a well-rounded mix of people. When a board is composed of individuals from various socioeconomic backgrounds, it is better equipped to understand and respond to the needs of a mixed customer base, workforce and global market.
The boardroom thrives when it becomes a space where different voices are not only present but actively heard and valued. Such diversity encourages richer discussions, elevates identifying solutions and enhances the quality of governance.
Your Fantasy Board
It is likely that you have, at least once, played and created a fantasy football team or the dream dinner party guest game. So, how about dreaming of a world-class fantasy board of directors?
Your fantasy board, a board full of your dream members, should ideally hit the following specifications. Fill in who you believe would be a great fit for the below:
- A visionary – someone who has a clear view of what the future may look like.
- A leader – someone who inspires and engages others.
- A tech/digital expert – someone who understands and can translate the digital world and encourages those not comfortable in that arena to embrace this future certainty.
- A financial genius – every board requires an individual with a high level of financial capability- the person should possess both financial prowess and the ability to communicate well.
- A people person – while everyone on the board should possess a certain level of interpersonal skills, there should be someone who, in particular, understands the impact on staff and the environment, with a high EQ.
- An extrovert – while all board members should be unafraid to share their opinion and present a fresh perspective, there should be at least one individual who is exceedingly engaging, confident and loved or hated in equal measure by all that encounter them.
- A challenger – the boardroom should be a place where ideas can flow freely, and the challenger will be unafraid to test, prod and probe the opinions and ideas of fellow board members to understand how their thoughts came to fruition and how they can be improved even further.
Board Advisory Services
fds has a wealth of experience with board support, including non-executive director support, coaching and mentoring, board reviews and much more. If you would like further information on the board support services fds can provide, please click here.