Board Roles – Why, When and How?

As the former Corporate Vice President at Northrop Grumman, Mary is an esteemed aerospace and defence executive. Mary serves as a Board Director and Compensation Committee Chair for Saab and a Board Director for Woodward. She also holds key roles on the Board of Governors of the United Service Organizations (USO), including Chair of the IT/Cyber Committee. Mary won the Operational Excellence award at the WeQual Awards, The Americas 2023.

During the event, ‘Board Roles – Why, When and How?’ Mary shared her experiences and practical advice. Here are the key takeaways:

BUILD A BOARD PORTFOLIO:

Assess your skills and expertise to explore opportunities beyond your current industry. Diversifying board roles can broaden impact and provide new challenges. Consider a nonprofit board position to gain experience and credibility.

UNDERSTAND THE BOARD’S ROLE:

Transitioning from management requires a mindset shift as the board primarily guides strategy and advises. Embrace this shift and provide guidance without overstepping management.

OVERCOMING CHALLENGES:

In male-dominated industries, build trust by being knowledgeable, making informed decisions, and taking responsibility. Emphasise your unique perspective and experience to earn respect and establish credibility.

USE EXECUTIVE COACHING:

NETWORK ACTIVELY:

Dedicate time to maintain and expand your network. Mary consistently checks in with contacts and offers help, which she likens to gaining social capital. A connection from earlier in her career, now a CEO, offered Mary a board role opportunity when she left Northrop Grumman, highlighting the importance of connections and visibility.

Mary has benefitted from coaching throughout her career, especially as she became more senior. Seek executive coaching to shape your leadership style, and show up authentically in new environments.

UNDERSTAND TIME COMMITMENTS:

Board roles demand varying levels of commitment but usually span a term of three years and require an average of five hours per week, according to the Boston globe, or 260 hours per year.

UNDERSTAND COMPENSATION:

On average, private company board roles may offer $45,000 in compensation, while larger organisations may offer up to $500,000 (according to Investopedia), along with equity or stock components. You can find these details in the Proxy Statement of the board.

CHOOSING THE RIGHT BOARD OPPORTUNITY:

Board roles are not for everyone. Research the organisation’s missions and values to assess their alignment with your interests and expertise. Examine Proxy Statements and prioritise roles that offer intellectual stimulation and match your passions.

APPROACHING A BOARD ROLE:

Curate a list of potential opportunities and remove those not in line with your interests. This refined list serves as your starting point for initiating conversations with contacts. Reach out to current board members to form connections and search by companies on LinkedIn to identify mutual connections.

APPLYING FOR BOARD OPPORTUNITIES:

The recruitment process involves engaging with nominating/governance committees, meeting current members, and talking to the CEO. While lengthy, it’s essential to discover and communicate your value-add and assess mutual fit.

NAVIGATE CONFLICTS OF INTEREST:

Consult with your current employer’s General Counsel to help ensure compliance and mitigate any risks.