Many senior executives see having a position on the board as a key element of their succession plan. For executives in their early years it gives them the opportunity to create policies that can help their community, while bringing attention and credibility to their leadership. The time commitment required to be a member of a Board is not a small amount, regardless of regardless of whether you’re a new executive or an experienced one. It’s important to be clear with yourself regarding what your expectations are and that money shouldn’t be the primary focus.
A well-functioning Board of Directors has numerous benefits for the company as well as its directors. Board members’ objective advice and guidance minimizes the possibility of costly mistakes. This allows for greater efficiency in business. Financial institutions, investors, clients and employees, all recognize the importance of having a board that operates effectively.
Being a member of a board could bring many benefits to an executive, in addition to the obvious ones to their career and business. It also adds credibility to the professional image of the executive. This increased visibility and credibility is important when it comes to leveraging the experience and knowledge gained for new employment or business opportunities.
When it comes down to choosing the directors of a board, the most successful companies select independent directors with the expertise and skills they require. They are usually not employees or shareholders of the company, and they bring an impartial view to the boardroom. Their outsider status can help the board avoid being biased and leaning toward one particular way of thinking, which can become a problem for companies that are too immersed in their own culture.