Pub. 10 2021 Issue 1

11 S p r i n g | 2021 F E A T U R E execution. Boards need to ensure that the CEO and leadership team are consistently focused on and are held accountable for the attraction, development and retention of talent above the norm. Broadly-skilled boards are comprised of people with an appropriate mix of relevant talents and experiences to enable proper guidance and provide a variety of useful viewpoints. This skill mix should be both functional (for example, finan - cial, technology, marketing, human resources) and industry (reflecting competitive dynamics, customer segments, emerg - ing markets, etc.). Too many directors with similar back- grounds, or a lack of broad and current skills, compromises the value derived from the board table. Open-Minded. Boards benefit from directors who are in - formed, insightful and inquisitive. In other words, willing to challenge assumptions, consider new ideas and approaches, and can think outside the box. A room full of directors with blinders on, who operate with “group think,” or who want to pretend that this is still “the good old days” does not enhance governance or add value. Awareness of the dynamics taking place outside the orga- nization is important as well. This may apply to the competi- tive landscape in your market or industry or knowledge of the external factors which could significantly impact the busi - ness. Also included here could be the potential for regulatory impact or strategic transactions — wanted or unwanted — to quickly reshape the organization. Ongoing director education to remain current and relevant is critical. Respectful. Often, boards are called upon to make tough calls or push back on management regarding critical is- sues. These types of messages are never easy but need to be delivered firmly yet respectfully. Boards have an obligation to be courageous in the face of difficult decisions, including whether to allow underperforming directors to continue serving. Respect also needs to extend to the viewpoints of other directors, always, even when disagreeing. Diversity is the order of the day! As has been well docu- mented, boards comprised of leaders with diverse perspec- tives generally make better decisions. Boards representing a robust variety of backgrounds and life experiences — wheth- er diverse by race, gender, ethnicity or other criteria, are not only appropriate but vital for success in today’s business and social climate. Also, having diverse role models on the board and at the top of the organization sends a very strong positive message to current and prospective employees. The willingness to truly govern and tackle the impor- tant business challenges are hallmarks of great boards. However, the dynamics of crafting a board with the right blend of skills, relevant experiences and diverse perspec- tives remains difficult for many institutions. A thoughtful approach to board composition, recruitment and succession will enhance both the quality of corporate governance and organizational performance. Alan J. Kaplan is Founder & CEO of Kaplan Partners, a retained executive search and board advisory firm headquartered in suburban Philadelphia. You can reach him at 610-642-5644 or alan@KaplanPartners.com . Broadly-skilled boards are comprised of people with an appropriate mix of relevant talents and experiences to enable proper guidance and provide a variety of useful viewpoints. This skill mix should be both functional (for example, financial, technology, marketing, human resources) and industry (reflecting competitive dynamics, customer segments, emerging markets, etc.).