Future Proof Your Earnings
with Board Positions
How to Join and Succeed on a Board!
By Margot Foster
If you’re thinking about joining a board for the very first time read on for some tips and insights on what to know and do.
Not everyone is capable of being a world-class high jumper. Most people aren’t Michelin star chefs no matter how good their cooking. Very few can withstand the G forces of Mach 8 in a fighter jet cockpit. And many aren’t the right fit to be a director. But you just might be!
The first thing to know is that being a director, serving on a board and understanding governance, all of which go hand in hand, is probably like nothing you’ve done before. It’s interesting, challenging, rewarding and very different.
To begin with, everyone is equal each with one voice and one vote, the chair is the leader not the boss, and at all times your primary interest is the best interests of the organisation you’re there to serve. It’s most definitely not about you.
A good place to start is to undertake some governance training so that you can learn the protocols and the language of boards and governance. This will stand you in excellent stead as you come to grips with your new colleagues and the new business once appointed or elected, which is a process over months in itself.
Be prepared to commit the time necessary to do the job properly. Know that there might be 10 meetings a year that will require your attendance whether in person or online. Plus, some committee work, maybe an annual retreat and of course the AGM. Preparation, reading, and travel need to be factored in.
Consider your skills and experience vis a vis the role PD and the purpose of the organisation. What can you do to add to and improve board performance and business outcomes? If your skills don’t directly match that in itself may not be an impediment: maybe your value is in how you think and what you know that’s different and fresh.
Every director is presumed and expected to have an understanding of and an ability to read financial statements. It is not the job of the person called the Treasurer to carry the financial load alone. Do some financial training if you’re not confident so you’ll know what a balance sheet looks like and means.
Research the organisation. Read its annual reports (which usually include the audited financial statements) and check out director profiles and other About information on the website.
These are just a few pointers from a much longer list of things to do and know. Stay tuned for more tips and suggestions in the next edition of Heels. If you can’t wait and have a question please contact Margot Foster