Navigating the Rapid Learning Process for New Board Members
Discussing points that often come up among higher-level marketing specialists, they frequently ponder how to snag an invitation to join a profit-driven board. Once the invite arrives, though, the major concern becomes comprehending the responsibilities involved to successfully serve. Generally speaking, it's a rarity for a fresh board member to make a significant impact right away due to a learning and adjustment period.
To better comprehend how marketers can reduce this learning curve, I reached out to Livian Reifberg, a previous McKinsey & Company senior partner. Reifberg holds a wealth of board experience, having served on non-profit, private (venture capital and private equity-backed), and public company boards. As the Walentas Jefferson Scholars Foundation Professorship Chair at the Darden School of Business (UVA), I've had the pleasure of collaborating with her, finding her insights invaluable. Below is a summation of her advice on initially choosing the right board and then speeding up the preparation process.
Selecting the Appropriate Board
1) Determine your core motivations for joining a specific board and what you aim to acquire from the experience. The more precise your aspirations, the better you can align them with the board's expectations during the evaluation stage. Conversely, it's equally crucial to understand the enterprise's objectives for incorporating you onto the board. The primary focus should not be on joining any old board, but one that sets both you and the organization up for success, with clarity around your specific purpose.
2) Ensure you trust in the CEO and their vision for the company. It's vital for your initial board appointment that you trust the CEO's leadership and that there's a clear path to success. Joining a board only to discover that the CEO must be replaced or that there isn't a clear vision for progress isn't ideal. While a more experienced board member can navigate such hurdles, your first experience should ideally involve confidence in the CEO and their strategy. This allows you to concentrate on mastering being an effective board member and contributing to the company's success.
3) Meet every board member prior to accepting an invitation. A board is essentially a team collaborating. Effective boards thrive on mutual respect and trust, even if not necessarily agreement. Welcome challenging personalities, but be aware of their existence beforehand and evaluate whether they're a good fit for you.
Boosting Your Learning Curve
1) Assess your strengths and areas for improvement. Some of us are self-assured and may fail to seek out knowledge. In the early stages, be patient and learn what's necessary to thrive in that particular environment. Effectiveness varies between boards, so it's crucial to understand both the CEO/board's expectations for you and to find an effective method of fulfilling them.
2) Employ strategic questioning – inquisitive appreciation. This approach can be overlooked, yet it's highly effective in leadership positions as a new board member. Ask thoughtful and constructive questions that promote further discussion. Avoid attack questions or failing to ask questions altogether; instead, find a balance that earns you credibility.
3) Be an eager learner. Even in your core strengths, continue to seek out new knowledge. The business landscape changes frequently, so past experience may not suffice. Look for opportunities to expand your expertise. While you want to strengthen your skills in your areas of strength, don't ignore your weaker areas – embrace the chance to grow and expand your abilities.
4) If you're a marketer joining a board, delve into the company's financials. Understand if it's a startup and what its financial path to profitability is. For growth companies, examine how growth affects the organization and how the financials work. Connect marketing to the organization's financial well-being. Is the business model clear? Is the path to profitability clear? What's the pace of growth? This is applicable to individuals in any function. If you have an operational or manufacturing background, understand the financial implications of your expertise.
5) Devote time to the CFO. Meeting with the CFO early (ideally in the first month) is beneficial. They can walk you through the company's financials, helping you grasp how the company generates revenue. Identify the most profitable customers. Sometimes, the company's executives may not fully understand their own financials. Spending time with the CFO and other executives prior to attending your first board meeting will educate you on the business's inner workings and foster important relationships.
6) Check if the board has an informal mentoring system in place. If so, choose a mentor who boasts skills different from yours. While it's appealing to forge connections with individuals who share your perspective, learning from individuals who differ from you is far more enlightening.
7) Be mindful of communication lines. In startups, there's often a casual atmosphere towards board member interactions with non-senior management staff. CEOs need to consider how they utilize board members' time and establish appropriate communication channels.
9) Establish an external guidance or tutelage connection if it's feasible. It's beneficial to have someone you can seek advice from in specific situations or bounce an idea or technique off of. This should be a more experienced mentor, and you should maintain confidentiality to ensure proper discretion.
In the end, Riefberg offered some final words of caution regarding board involvement. She pointed out that it can be alluring to accept a board position even if it seems less than ideal. Remember, board membership is a long-term commitment that can cause significant disruption if you exit prematurely. Take the time to evaluate whether this is the right board for you before making such a significant commitment.
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After collaborating with Vivian Riefberg, a distinguished board member with experience at Darden School of Business, I learned that aligning personal aspirations with a board's expectations is crucial during the evaluation stage. New board members should also consider the company's goals and the trust they have in the CEO's vision.
To foster a successful board experience, it's essential to assess one's strengths and weaknesses, employ strategic questioning, and be an eager learner. Marketing professionals should delve into the company's financials, meet with the CFO, and establish relationships with experienced mentors.
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