Selecting boards for the long term: lessons from Silicon Valley.

AuthorZinn, Ray
PositionBOARD LEADERSHIP - Cover story

A CEO has options for bringing on a new board member. These 'fits' must be part of the selection criteria.

Aboard not aligned on the corporate mission is like a boy with multiple brains. It will try to run in every direction at once, and thus go nowhere desirable.

Every company has a vision--a place on the horizon all hands are focused upon. Only by having every employee understand, embrace and row toward that same spot does a company succeed. That point on the horizon is typically far off, which makes corporate missions long-term goals.

It is the interplay of long-term missions--and the nurturing of enduring companies to achieve these missions--against transient short-term share price movements and valuations that have unraveled many companies and outright destroyed many thriving legacy enterprises. In most cases, board members not fully wed to the corporate mission sow the seeds of self-destruction. A board focused on short-term valuation bumps inherently works against corporate missions.

Every middle manager quickly learns that hiring people who are good cultural fits is essential to maintaining the corporate culture, and also to creating a well-focused team. What this cultural matching process ensures is that the long-term goals are held by all, and that new employees row toward that single point on the horizon shoulder-to-shoulder with their teammates.

Selecting board members is no different. In all companies, and especially in those led by an entrepreneurial founder, the mission and the cultural values must be embraced by every board member as closely as they would by a newly hired engineer or receptionist. Yet this is not always a criterion when a new board member is evaluated. They may be selected for their industry expertise, their association with financial companies, or even for their public identity. But without a belief in and attachment to the corporate mission, they become disruptive to the company itself.

A poison in the organization

It is even more problematic for board members as they can be difficult to dismiss or change--in fact, it is nearly impossible. Most employees have an "at will" status, and can be let go for no reason. Board members cannot. If you mistakenly adopt a board member not aligned with your corporate vision, and if they are unfamiliar with your company from the inside, they can become a cumulative poison to the organization.

Most of the problem that a mismatched board member presents is one of short-...

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