Tag Archives: Board observer

A new role

turkishIn June last year, I was appointed to my first board, having sat as an observer for a couple of months before that. At the end of June this year, the directors of that board nominated me to be their Chairman, effective 1 July, taking over from the founding chairman.   I have expressed thanks to the directors and appreciation for the confidence they have in me to chair the board at a time when the company looks to move into the next stage of its growth.

Within days of the board meeting, I was on a plane to spend a little over a week touring around Turkey with my oldest son, who was meeting me, having enjoyed the first half of his gap year overseas. While exploring the fascinating landscapes and history of Turkey, I took some time to reflect on the process to date of becoming a non-executive director and the expectations on me as a chairman. These expectations are both set by others and by the “a-type” personality that resides within!

In reflecting on the process to date, on the one hand, I should be pleased to have not only a chairman’s role but also have been appointed to the board of the foundation for an important cultural institution in Sydney. Both these roles provide me with opportunities to try to add value based on my previous executive and not-for-profit experience. They also provide me with challenging issues to consider, decisions on which require rigorous thought. On the other hand, I have now been knocked back for two listed board roles where in each case, it seemed I had the exact experience and skill set the board was looking for, with deep relevant industry experience and apparently glowing references. Both times at least one reason was that I didn’t have listed board experience.

I am persisting with my coffee meetings, but have not found large networking functions a worthwhile proposition. It only brings home the message that there are so many other people seeking the same roles!

So if I am to keep on doing what I’m doing, I can only hope to do the best I can in the roles I have and to gain further experience. While pondering this and stirring one of my many Turkish coffees, it struck me that the characteristics I would need to bring to the new chairman’s role were the same as the characteristics of a good Turkish coffee. Ground, cooked over a flame until just below the boil, Turkish coffee is best served strong and a little sweet. Leading a board through a period of change, particularly after having the same chairman for the past 10 years, is going to require me to at times be strong, to help the board approach things in a different way – more suited to that of an established rather than developing company. My aim is to lead from within, rather than from the front, but that will require ensuring I can bring everyone along. It will take an inner strength to know when to encourage others to adopt a different view or approach to the one from the past as well as to know when I should allow others to lead and direct a course of action. At the same time, as change isn’t always easy for some, even just the change in chairman and the way a meeting is run, so it will need sweetness in the form of recognition and consideration.

And with a new financial year, the coffee meetings need to ramp up again. Perhaps this year will bring another step in the process. After all, I still have 724 to go.

Coffee count: 276

(While it was a delightful experience to travel with my son, I don’t think it’s appropriate to count the coffees and glasses of raki that we shared!)

Being a Board Observer

long macchiattoA couple of months ago I noted in a postscript that I had a second interview for a board role.  The role was for the board of an unlisted public company. This company has a strong connection with a large listed financial institution, being effectively, a franchisee for two of its branches.  As a result, the board of the company has to grapple with the issues many small to medium size businesses have had to deal with, while at the same time, understanding how to grow and develop a banking business.

The company in question has a strong relationship with its “franchisor” (the financial institution), which itself has developed a number of programs to assist the companies that help to develop the network.  One of these focuses on Director Education, which includes a Board Observer program, education and development opportunities for directors and induction days for directors and observers.

The company has appointed three new Board Observers to its board.  It is the company’s intention to offer the board observers a directorship, but a three month stint as an observer allows the company’s existing board to get to know the observers and work with them around the table.  It also allows the observers the opportunity to understand more about the company and the existing directors and understand whether and how they can add value to the board.  From discussions with the Chairman, I also understand that there is an expectation that this process will allow for board renewal in a gradual and planned manner, with a smooth handover.  Each of the new observers brings different skills and experience to the company.  Having signed confidentiality agreements, been included in board meetings, sub-committees as appropriate and director training as observers, once a mutual agreement is reached to become a director, it should be a seamless process.

It strikes me that this is an excellent way to not only conduct due diligence from both the perspective of the board and the prospective candidate, it is also a valuable process for the aspiring director.  It seems that the greatest hurdle to becoming a board director is that one isn’t currently on a board.  (It could be that one doesn’t have board experience but perhaps eight years on the board of an NFP doesn’t count).  It makes me wonder why there are not more companies considering such a process, given that supposedly there is a desire to increase diversity (age, gender, experience).  This is a good way to overcome the problem when a board has a great candidate on paper but no one on the board has worked with them before.

I know that there will be those with the answers as to why it can’t happen: potential legal ramifications of who was in the room at the time a decision was made or that it may constrain the usual discussion around the board table. But honestly, if boards want to make it happen, they clearly can.  There are some doing it now.

Coffee count: 168