6 Things to Look for in a Board Member

Businesses looking for board members should screen for these 6 criteria:

What to Look for in a Board Member

1. Technical knowledge

Board members make decisions that greatly affect a company. Meetings will go faster if everyone has technical knowledge of what the company does. No one will have to spend time catching anyone up to speed. People will ask better questions because they understand complex concepts and vocabulary terms.

In addition, board members will make better decisions. They will be able to anticipate the effects of individual policies. This is especially true if members have worked in the industry before. People will be able to predict how stakeholders will react to policies.

2. Passion

Some people join the board of directors for the wrong reasons. They might have dollar signs in the eyes. They might also want to grow their reputation and expand their social circles. There is nothing wrong with wanting these things. However, they must be secondary reasons why people want to join the board.

The primary reason must be that they believe in the company’s mission and values. They want to help. There will be conflicts of interest if this is not the case. Without passion, these board members will not care about the company’s projects. They might help themselves at the expense of the company’s prosperity.

3. Emotional intelligence

The board of directors is a team. Having disagreements is okay when having discussions. The group can consider each option and choose the best course of action for the company. However, members should resolve disagreements in productive ways. They should avoid shouting at each other and having temper tantrums. They should also avoid petty behavior, such as giving anyone silent treatment or not answering calls or texts.

Emotional intelligence is an important factor to think about when picking a board member. Look for people who display empathy by being considerate to others.

4. Connections

Board members get together to make decisions on behalf of shareholders. Well-connected board members will be able to make things happen. With just a few emails and phone calls, they can introduce executives to business leaders outside the company. This will help the company solve problems.

For example, board members can help the company look for a new supplier and expand operations overseas. Projects will be completed on a faster timeline. In general, things are a lot easier in business if you know the right people. Shareholders will be happy knowing that the management team is competent.

5. Money

Cash flow is the lifeblood of every business. Companies shut down when they do not have enough money. It does not matter how great the business idea is. As soon as you run out of cash, that’s it. Therefore, startups need to constantly raise money to keep going. They may not be profitable yet. Their expenses may be greater than their sales. Investors must pick up the tab for the time being. Hopefully one day, they can make back their money and then some.

Businesses should look for financially successful board members. These members can quickly write a check if the company is strapped for cash. This can help the company avoid bankruptcy in emergencies. In addition, wealthy board members likely know other individuals with the same socioeconomic status. They can introduce the company to new investors and lenders.

6. Time

People in the business world are infamous for being busy. They attend meeting after meeting. At times, they forget to eat lunch because their minds are focused on something else. Being ambitious is an admirable quality. However, people must remember to not stretch themselves too thin.

Board members who have too much on their plate have trouble fulfilling their responsibilities. They might not be able to attend all meetings. They might also produce mediocre work. Therefore, people constructing a board should ask prospective members if they have enough time for another project.