Board recruitment practices have kept pace with longstanding business practices, but the marketplace has been changing rapidly and board recruitment practices just haven’t evolved at the same pace. In essence, board recruitment practices are quickly becoming outdated. A board’s composition is one of the most viable assets a company has. The wide variety of perspectives that board members bring to the table adds value through collective opinions. Boards develop a sound consensus from robust discussions that result from deep questioning and the strong expertise of one or more board directors. Collective knowledge is invaluable in the areas of strategy and risk. It’s time that board recruitment practices got up to speed with modern governance. Today’s board directors need much different expertise than board directors of the past. They need to be more technology-oriented, security-minded and forward-thinking. They need to be able to take advantage of digital tools like software solutions, artificial intelligence and machine learning. In addition, boardrooms need all the skills and experience that make for a broad range of governance and strategic issues.
12 Reasons Why Board Recruitment Practices Need to ChangeHere are a dozen reasons why board recruitment practices must change:
- The present time requires board directors to have different skills than in the past.
- Boards not using self-evaluations for the maximum potential.
- Current recruitment practices should consider whether new board directors are capable of assessing how external stakeholders view the company and leadership.
- Past practices didn’t require nominating committees and boards to be aligned on the board’s needs.
- Past practices focused on a narrow set of qualifications.
- Past recruitment efforts favored a loose structure informed by networking.
- Choosing from a small pool of candidates.
- Not allowing enough time to do thorough interviews.
- Failing to understand and consider boardroom culture.
- Failing to keep candidates informed of the status of their candidacy.
- Failing to do a thorough reference check on all candidates.
- Failing to have the talk about the modern expectations for tenure.