A successful board member takes their role seriously, and contributes meaningfully. They need to be able make difficult decisions, think strategically and keep the larger picture in mind while bringing with a unique perspective based on their own experiences. A strong board will help the company achieve its goals and objectives by providing guidance and supervision. They will be motivated to see the business flourish and not afraid to express their opinions.
While having a wide range of connections is essential however, organizations should concentrate on recruiting individuals who care deeply about the cause and are willing to dedicate their time. It’s also necessary to ensure your board members have the right skill set. According to Institutional Shareholder Services the boards of Enron and Kmart and the struggling retailer Warnaco had a variety of financial skills and knowledge. These included former Stanford deans and accounting professors as well as a prominent Asian financier and the former head of the U.S. Government’s Commodity Futures Trading Commission. However these credentials were not enough to prevent the company from falling.
Participation in board https://boardcontest.com/what-is-an-advisory-board-and-does-your-organization-need-one/ meetings is often regarded as an indication of a diligent member. As Stanford GSB adjunct faculty of corporate governance Nell Minow explains, this measure does not distinguish between boards that are good and bad. In fact attendance records of the boards of GE (which was featured on Fortune’s 2001 list of the most admired companies) and WorldCom reveal little distinction.