This week, Partner and Head of our HR Division, Adam Cragg explores the key skills board and chairs are seeking when looking to appoint a new Board Director, from must-have experience to the highly desired qualities that will stand out against other candidates.
While the role of a board, and indeed, its members, can vary across industry, location, organisation type etc, there are five key skills that many will consider as non-negotiables for would-be Board Directors.
Strong Analytical Skills - A Board Director should have the ability to collect and interpret data, and will be able to confidently assess risk and calculate the impact of certain events and decisions, while conversely possessing the ability to identify the opportunities for growth.
Adaptable - In 2023, candidates for a Board Director position must be able to respond quickly to change, be this within their organisation, or the wider industry, possessing the skills to drive and lead successful change management strategies within the business.
Strategic Decision-Making Skills - The individual should be capable of making decisions in a short timeframe, often within high-pressure and challenging circumstances, all the while considering the bigger picture implications of their decision,
Business Acumen - A Board Director will be able to understand complex business issues, and the actions required to cope with them successfully, leading the organisation to achieve their goals.
Accounting and Financial Literacy - In addition to a thorough understanding of the operations of the business, a Board Director should also be financially literate, and familiar with items such as annual reports, cash flow statements and statements of shareholders’ equity.
If you do not possess these skills, it’s important to think about your previous executive career experience; can you draw down on any transferable skills within this period which means you can articulate your capability in an interview setting?
While not necessarily compulsory, there are certain other skills which are highly regarded and will certainly put you in good stead in the eyes of the board and the board chair.
Networking Skills - While the art of networking is not for everyone, it is part and parcel of business, and certainly, being a board member. Your current and future network and relationships will be analysed by the board in order to assess what benefits and outside resources your appointment could bring to the organisation.
Technology and Cybersecurity Knowledge - While many board members feel they are adequately prepared for the threat of cyber attack, this is not always the case, and therefore a candidate with Information Technology and Cybersecurity skills will be looked upon favourably during the appointment journey.
Governance Experience - A Governance qualification can be just the thing to separate you from other candidates in the process, as well as setting you up to be a better director, able to identify and mitigate risks
Board Directors are not appointed to provide just one set of skills, so the board will be looking for a mix of these skills, with others offering more value to the organisation than others. It is up to the aspiring Board Director to ensure they are equipped with a range of skills to tackle a wide range of issues, and be able to articulate their capability in interview.