Directors: Orient Yourself with the Board Compass

Navigating at sea requires a compass—and navigating a board is no different. In my series “The Board Director's Compass,” I lay out what I see as the essential compass for navigating the board. Here’s a rundown of the compass’s cardinal points.

In the North, I think of skills—both hard skills and soft skills. Who sits around the table? What skills do they bring? How do they act personally? How does the board collectively gel to add value to the organization?

To the East, I think of the agenda, which represents a huge decision as to how the board invests its time together.

In the South, we have briefings. There are two aspects to briefings: the “hard” matter of briefing content and the “soft” aspect of how directors present themselves personally.

To the West lie structural components. Boards always require audit, HR and compensation, and governance committees. Consider whether you need others: Risk? Technology? Stakeholders? Ad hoc committees?

At the center of the compass, you need an extremely competent chair. The chair is a critical determinant of board success. Not only must they be able to manage board interactions so that every director is contributing equally, but they must also have an excellent relationship with the CEO. Without this relationship, there can be no trust between the board and the management team, and the board will have no scope for adding genuine value.