Serving as an 'on-call' consultant.

• Author: Ray, Paul R., Jr.
• Position: Putting In Place the Right Board for the 21st Century

What the boards of several high-tech leaders tell us about the factors that will define the next generation of directors.

AS AMERICAN COMPANIES regear themselves to meet the challenges of the 21st ,Century, the boards of today's hot technology companies can serve as a model for the next generation of directors. A quick analysis of the boards of high-tech leaders Microsoft, Intel, Hewlett-Packard, and Compaq Computer provides a glimpse into the board of the 21st Century- and the factors that will define the next generation of directors.

Specific expertise. The era of director as corporate steward is over. While high-tech companies know that vision is essential to long-term survival, they also understand that directors with functional expertise in tactical areas like finance can provide innovative operating approaches that drive short- and medium-term profitability. Jill Barad, the Mattel executive responsible for the Barbie phenomenon, sits on Microsoft's board. Intel has Jane Shaw, a scientist and expert in drug-delivery systems. Peter Larson, formerly head of Johnson & Johnson's consumer care group, brings marketing and retailing expertise to Compaq's board.

Non-celebrity status. The old generation of boards was typically larded with marquee figures such as Barbara Jordan or Henry Kissinger, who lent their name and glamour. Celebrity directors can attract individual investors and provide links to other "big names." However, they often cannot offer an appropriate perspective on business realities. None of the four high-tech companies has a celebrity director.

Global experience. Many companies in the exploding technology sector are creating themselves as global organizations. A semiconductor company, for example, may have its chips designed in India, have its photomasks made in California, be water-etched in Japan, diced and mounted in Korea, assembled in Thailand, encapsulated in Singapore, and finally sold through independent distributors throughout the world. As the world's economies gradually merge into a "global village" cultural sensitivity and experience are crucial. Although he is the son-in-law of Hewlett-Packard founder William R. Hewlett, Jean-Paul Gimon brings extensive overseas experience. Compaq Director Kenneth Roman was formerly chair of Ogilvy & Mather Worldwide.

Limited outside board service. Ten years ago, it was common for typical directors to sit on...