
ESG Matters
How to Save the Planet, Empower People, and Outperform the Competition.
Recently a board member told us that he was on the board of a significant not-for-profit corporation. He followed this statement by saying he had no idea what a board member does, but he was looking forward to getting involved.
What this board member was describing himself as was an untrained volunteer, not the Professional Director® that the organization needed and deserved. There is a tremendous difference between the volunteer with a basic understanding of what an “average” director does and a “Professional Director®.”
In another instance, a government-appointed director to a national regulatory body recounted to us that they saw themselves as a “government appointee” who needed to ensure the wishes of the government of the day were carried out. In fact, however, regardless of how you get on a board, once you are there you must act in the best interests of the organization. For the most part, the best interests of the organization are typically aligned with those of the shareholder, however, from time to time, the interests of the organization may conflict with the preferences of the government of the day. This director did not understand the governance profession.
Here's an example from the private sector of what a Professional Director® is not. A former CEO was appointed to a publicly-traded corporation based on her experience in the industry sector. Immediately she jumped in, sleeves rolled up, ready to rewrite the operational plan based on her own industry understanding. This board member did not understand that the role of a board member is not to do the CEO’s job nor to substitute management’s judgement with their own. Rather, it is to ensure the CEO is exercising sound judgement.
Serving on a board is neither a hobby nor a pastime, nor a way for a particular shareholder to get their way, nor an opportunity to supplant oneself as the de facto CEO. Rather, it is a trusted fiduciary position at the very top of an organization, that requires special training and skill.
So, now that we have a picture of what a Professional Director® is not, let’s look at what it is!
How to Save the Planet, Empower People, and Outperform the Competition.
The Ultimate Guide to Competence and Confidence in the Boardroom.
If the global pandemic taught us anything, it’s that all organizations need a strategy to manage in a crisis.
Virtual meetings done well and with intention mean that you can be Virtually There!