For many senior executives, getting an office on the board is a key element of their succession plan for retirement. Young executives can take advantage of this opportunity to establish policies to benefit their community as well as gain credibility and attention for their leadership. The time commitment to be a member of a Board is not an insignificant amount, regardless of whether you’re a young executive or an click resources experienced executive. It is crucial to know what you are expecting and that money shouldn’t be your primary objective.
A properly functioning Board of Directors offers many benefits for the organization and its directors. The objective advice and guidance provided by board members reduces the chance of costly errors, allowing for greater success in the business world. Investors, financial institutions and clients and employees, all recognize the importance of having a board that is functioning effectively.
In addition to the obvious benefits to the individual’s career and business, serving on a board adds an impressive look to an executive’s professional image. This increased visibility and reputation is crucial when trying to leverage that knowledge and experience to identify new business or employment opportunities.
The most successful companies select independent directors with the necessary abilities and knowledge when it comes to choosing the board. They are usually not shareholders or employees of the company, and bring a a neutral perspective to the boardroom. Their neutrality assists the board in not becoming biased and leaning towards one particular way of thinking which could be a problem for companies that are too deeply rooted in their internal culture.