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Once youâve established yourself as a director on one board, you may very well find that youâre being approached to serve on one or more additional boards.
Is saying âyesâ a good idea? What should you think about before deciding? And what is the ideal number of boards to serve on?
As so often with the topics we explore in The Savvy Director, the answer is, âIt depends.â In this case, it depends on some very personal considerations, such as the stage of your career, your family situation, an...
At its core, a board of directors is the ultimate decision-making body for an organization. The boardâs ability to make sound decisions based on consideration of reliable facts, coupled with the good judgment of its individual members, is a key element of organizational success.
That makes it important to understand the factors that lead to good decision-making as well as those that detract from it. One risk to good decision-making is whatâs known as decision fatigue. The term refers to the d...
Youâve read the material. Youâve seen the presentation. Youâve listened to managementâs request. Now itâs time for the board to make a decision. Itâs an important decision, too. Youâre expecting a robust discussion.
But the room is quiet. Maybe a couple of directors ask a question or two, just for clarification. Now it looks like the board chair is about to call for a vote.
Whatâs going on? Groupthink, thatâs what. Your board has fallen victim to Groupthink.
Weâve all been there, at one tim...
Boards make decisions in a variety of ways. Simple majority vote, ranking, scoring, and multiple voting rounds help directors consider options but donât necessarily get the board to a place of agreement. Consensus decision-making helps a board achieve agreement, even if the decision made is not everyoneâs first choice.
Consensus that emerges from discussion involving a diversity of perspectives is a powerful force that tends to lead to good decisions. Once consensus is achieved, directors lea...
âConflict is inevitable, combat is optional.â â Max Lucado, US author
As a board director, I find thereâs nothing like robust boardroom debate to get me really engaged. After all, thatâs what weâre there for, isnât it? To wrestle with big, important issues; to help guide the organizations we care about around dangers and into a bright future; to make sound decisions in the interests of all our stakeholders.
But what about when the debate is not so healthy, when it degenerates into disrup...
Recently, our local newspaper ran a column about the importance of character in our political leaders. It got me thinking about how important it is for board directors to âbe of good character.â
Character is a foundation for effective decision-making. That makes it vital for board directors. Sure, directorsâ competencies determine what they can do, and their commitment affects how hard they work, but itâs their character that drives how they make important decisions, not just in the boardroom...
The value you bring to the boardroom is what matters.
Youâre in the boardroom for a reason. It's not enough to simply show up. Putting your skills and attributes to work will enable you to make a positive impact on your board.
Knowing how and where you can add value helps you be the most effective director you can be. It gives you the confidence to engage actively with your peers around the board table (or on the computer screen).
âThe board is a special group of people. People who are pr...
Much has been written and discussed about purpose since May 2021, when we posted our Savvy Director blog, The Purpose-Led Board. One of the key points for boards and their management teams was a siren call to collaborate toward a common understanding of the purpose â the âwhyâ â that guides the mission, vision, and values supporting their work.
When organizations are formed, thereâs usually a clear purpose in mind. Itâs often described as the reason why a company or organization exists â bey...
We say it all the time â âPreparation is the key to success in the boardroom.â Thatâs why we call our company DirectorPrep. Thatâs why our tagline is âReady for your board meeting?â
And thatâs why we developed the PREP Framework that provides individual directors with a consistent, repeatable process to prepare for board meetings. We want to support directors to be ready for their board meeting every time. (Visit the PREP for Success page on our website to download the PREP Framework.)
Bein...
In our last Savvy Director blog, we explored how a director may incur personal liability because of their board service. Practicing due diligence is all well and good, but a directorâs actions or inactions may still expose them to litigation and penalties. Thatâs why companies provide their directors with protection through indemnification.
Well-crafted Directors and Officers (D&O) insurance provides an additional line of defense. As a director, itâs a good idea not just to confirm that there...
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