The Savvy Director Blog

“Conflict is inevitable, combat is optional.” – Max Lucado, US author

As a board director, I find there’s nothing like robust boardroom debate to get me really engaged. After all, that’s what we’re there for, isn’t 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 “be of good character.”

Character is a foundation for effective decision-making. That makes it vital for board directors. Sure, directors’ competencies determine what they can do, and their commitment affects how hard they work, but it’s their character that drives how they make important decisions, not just in the boardroom...

The value you bring to the boardroom is what matters.

You’re 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).

“The 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 — the ‘why’ — that guides the mission, vision, and values supporting their work.

When organizations are formed, there’s usually a clear purpose in mind. It’s often described as the reason why a company or organization exists — bey...

We say it all the time – ‘Preparation is the key to success in the boardroom.’ That’s why we call our company DirectorPrep. That’s why our tagline is ‘Ready for your board meeting?’

And that’s 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 director’s actions or inactions may still expose them to litigation and penalties. That’s 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, it’s a good idea not just to confirm that there...

When you join a board of directors, and throughout your service on the board, you probably won’t give much thought to the personal financial risk you’ve taken on. And yet, a past board decision could come back to haunt you.

In general, the legal structure of a corporation provides you with protection from personal liability. But that protection is limited. There are instances where directors are held personally liable for a company’s violations of laws or regulations. The possibility of being...

Your success as a board director isn’t about how smart you are, it’s about your willingness to do the work. I’m calling it ‘Boardroom Grit’. Is there such a thing?

Think about the wealthy dude who gets a seat at the high profile charity board table because of the size of his family’s foundation and the potential for a sizeable gift someday … how gritty is that when he never opens the meeting materials and confirms that reality with his off-topic comments and rabbit-hole questions?

Today’s S...

Here’s a recent email from a DirectorPrep member: “I am serving on a board that does not have much understanding of risk management. What suggestions would you have to get the discussion going?”

That’s a great question from a risk instigator – a board director who’s looking to find a way to push their risk management rock up a hill when their fellow directors don’t see much value in having the discussion.

That’s okay. It won’t be the last time directors view risk management as nothing more ...