Does Your Board Have a Bell-Jar Ecosystem?

The progressive boardroom moves the needle away from operating in a vacuum with targeted board recruitment

for the 21st century. While turbulence is not new, its nature and degree present an ever-increasing need for

executive- level acumen to capitalize on opportunities and mitigate risks in the ever-more-sophisticated business

environment. According to Spencer Stuart approximately one-third of the 2014 S&P 500 board appointments

had no previous public company board experience. While adding first-time directors with no board experience

is a step away from tradition, the advantages can far outweigh the risks. As Einstein stated, “The measure of

intelligence is the ability to change.” In a disruptive era, a progressive board prepares for and anticipates critical

incidents outside of the steady state and recruits board candidates from that framework.

Drivers of Change

1. Knowledge: universally available and rapidly obsolete

2. Uncertainty: increased uncertainty and risk

3. Business environment: more global and diverse

For public companies, a few critical incident areas that can define a director search framework are:

Strategy and Performance: changes (disruptive → crisis) that require a company to revise strategy

Transactions: (self-initiated → takeovers) that fundamentally change a business

Reputational Risks: (major accidents → activist investor actions) that require a stand-out response

Those that have been tested in the fires of disruption and transition show a capability for value creation in

today’s world. These are “turbulent times,” and competing and succeeding in this environment requires

directors to focus on what really matters and show a track record of due diligence.

If your board is considering the addition of a first-time director, here are few things to keep in mind:

Obtain solid references from executive- level professionals who have worked with the candidate on a

day-to-day basis and have intimate knowledge of their leadership competencies.

Look for a honed ability to absorb, analyze and process a great deal of complex information to identify

pertinent questions.

Identify the skill and savvy to balance a sense of unity with openness to all relevant information that

may risk a fracas from time to time.

Tracy E. Houston, M.A. is the President of Board Resources Services,

LLC. She is a refined specialist in board consulting and executive

coaching with a heartfelt passion for rethinking performance, teams, and

the boardroom. With a focus on leadership, strategy, and risk

management, she consults primarily with directors, presidents, and senior

officers to provide input on high level, sensitive, and complex issues.

Sometimes called the Chief Potential Officer, Tracy has a background that

includes sitting on a number of boards, board consulting, and coaching for

potential. She develops unique insights into the vital role of human

interaction and the inevitable fusion between barriers to growth and

success. Extensively published, Tracy has written hundreds of blogs that

are featured on numerous award-winning websites and has a monthly

board column hosted by ColoradoBiz Magazine. She is the creator of the

Board Guru™ eBooks –a corporate governance leadership series.

Her company, Board Resource Services, has a website at

www.eboardmember.com and www.eboardguru.com. Follow Tracy on

Twitter @BoardGuru. Headquartered in the Denver, Colorado area, Tracy

is an avid hiker.

Consultant to Boards, Author of Board Guru™ eBook Series and Previous Sitting Director

– Triple Crown Value Proposition