Win the competition to recruit top directors: begin the search process early, and follow these recommended suggestions.

• Author: Griesedieck, Joe

IN TODAY's corporate environment with its stringent governance requirements, director candidates who meet independence and professional capacity criteria are hard to find. Competition for qualified individuals is fierce.

Professionals who have solid business backgrounds and are free of various types of corporate "relationships" find themselves in hot demand. But directorships are no longer viewed as necessarily desirable, making life difficult for boards seeking new blood. Also, several decades of cutting executive development programs, promoting specialists to executive roles, forcing early retirements, and adopting non-traditional management structures (as in dot-coms) have left a void in the pool of potential recruits.

Despite the obstacles, it is possible--through planning and effort--to recruit highly qualified directors. The best results will occur when boards and nominating committees are realistic about the recruitment process.

Director candidates may be genuinely interested in board service, but they are not job applicants and should not be treated as such. Corporations need to court these candidates. Boards must also accept that it will take longer to identify and qualify candidates. Consequently, it's best to begin the search process early.

Recruit Broadly. With the competition for qualified director candidates remaining strong, the nominating committee and its advisers must be more creative in identifying potential directors. They should look beyond their company's industry and think expansively about possible candidates.

Presidents of sizeable divisions are often good candidates. In our experience, these individuals, while less seasoned than CEOs, are nonetheless well prepared. Their employers often look favorably on directorships for division chiefs because they see such activity as leadership development. While it's important to have two or three sitting CEOs on your board, adding a more diverse mix of skills and experience to the group creates a tapestry of talents that will serve your organization well. The key is to assess the strengths and skill gaps of your current board, as well as your company's future challenges, and then design your new-director profile to meet those needs.

Know Your Candidate. Shareholders, regulators, the news media, and others will scrutinize your director selections, so reference checking is essential. We have found it most effective to focus on candidates' board service records. Their colleagues...