HR execs are timely board candidates.

• Author: Carswell, Bruce
• Position: Human resources

A critical part of board agendas today involves human resources decisions.

IT'S POPULAR FOR corporate executives to say that human resources are a top priority and represent significant corporate governance issues. The time has come to effectively address these issues at the board level by drawing on senior human resources executive talent for directorships.

Good corporate governance requires appointment of directors who bring special competencies and business acumen. Over the years, directorships have been filled typically by chairmen, CEOs, presidents, senior executives in finance, marketing or technology, academics, and former government officials. Yet most boards have not updated their directors' expertise to recognize the shift and the importance of a broad variety of critical people issues.

Domestic and global competitiveness create a business environment in which key success factors revolve around people issues, intellectual capital, effective management processes, and cultures. In its 25th annual Board of Directors Study, Korn/Ferry International quotes several respondents (directors and chairmen of Fortune 1000 companies) who identified the greatest challenge facing their boards in five years:

* "To remain independent, with diversity -- but not just for the sake of diversity. We need to have a broad range of expertise."

* "Maintaining a long-term view, taking into account all constituencies -- customers, employees, and shareholders."

* "To understand the business, its mission, strategies, and core competencies, and able to assess management and corporate performance and take actions as necessary.

Having personally served on a number of boards, my own experience indicates that in today's dynamic and competitive environment, people issues provide a stream of agenda items for board consideration. Key issues that involve continuing board participation include senior executive recruitment, selection, compensation packages, and executive bench strength. There are education/training investments to consider. Diversity programs -- both voluntary and compliance-oriented -- are on the front burner along with major collective bargaining issues.

Michele Hunt, founder of HR consulting firm Visions and Values and former vice president for people at Herman Miller Inc., currently serves on the board of ServiceMaster Co. She observes that "boards often look for operational and financial experience when recruiting new directors because of their...