Few realize that CEOs have bosses, too. The Board of Directors represents the shareholders and oversees the activities of a company or organization, including the superstar CEO. The board approves the strategic direction and ensures that the C-Suite and upper management serve the will and interests of shareholders. Yet, as boards age, many millennials wonder what it takes to get onto a board. Between aggressive marketers advertising their services and the great unknown of what it takes to become a board member, it seems like an insurmountable task to move into the boardroom. Here is my way.
Education on the Boardroom
Most boards meet 4 to 12 times a year. While that is enough time to discuss the agenda, it is insufficient for learning on the job. Consequently, most candidates need to know most of the ins and outs before their first meeting. The decorum and behaviors of the boardroom amplify this need. The infrequent meetings restrict the ability of boards to work as a coherent and self-organizing team. Thus, the decorum and rules ensure efficient and productive meetings in which everyone is.
Apart from general education, a coach or mentor can be extremely helpful. Often, we don’t see the world the same way someone else does. A coach can give us feedback and guidance to get through the career change. Coaches can also give you positive feedback when the career change hits a speed bump.
I joined the NACD Accelerator program to learn about the decorum of the boardroom and refresh my factual knowledge of the board’s financial and risk management aspects. I also worked with a coach from a)-plan coaching to give me a better perspective on my life and how my career change integrates into my broader ideals.
Non-Profit Boards
Even with the education in place, most positions require both a working network and some practical knowledge. I was advised to join a non-profit to build this knowledge. However, I disagree with this assessment. Joining a non-profit to pat your resume is a red flag for many recruiters and HR professionals. It is extremely easy to sniff out people who don’t have a relationship to the mission of a non-profit and joined because there was a free board seat. Instead, find an organization that resonates with you and work yourself up. For me, that was joining the then Jacobs University Foundation of America. I fondly remember my student days, especially the non-academic part. Thus, I was happy to assist when asked to help create their 2030 plan. From there, I was willing to move into the treasurer role, implement the financial aspect, and then take on the presidency.
Networks and Networking
Non-profits also play a critical part in networking. You get to meet great people whom you can help and who might have an in for you. Yet, even more important, if you are passionate about the non-profit you are working with, it gives you something interesting to talk about. Depending on the other, I can easily entertain with anecdotes about the students who receive our scholarships or discuss upcoming artists we support as part of the ArtFest on Campus or during some fundraising auctions.
However, start networking well before you need something from your network. Building a genuine network is hard if everyone feels you are job hunting. Not only do you have to be selective about whom you spend time based on your goal, but you also put too much pressure on yourself. I achieved my best results when I walked into a room with the goal of introducing two people who can genuinely help each other. This goal required me to listen to people, remember their words, and engage with their problems. This active listening puts you far ahead of anyone who sees the initial networking as transactional.
My first advisory and board seats came from within my network. Most often, acquaintances who introduced me to someone within their network got me to the positions.
Investments: Not A Cheat Code into the Boardroom
The two corporate board seats I currently hold at MPathAI and Market Intend came after an investment in the company. Thus, asking whether you could buy the board seat without any preface would be valid. While it might be possible for multi-millionaires to do so, it’s impossible for most, including myself.
The biggest issue is that having someone inexperienced or out of place on the board is a significant turn-off for investors. Being ready to answer “Why are you on the board?” or “What value do you bring to the board?” is critical to keeping future investors interested. Second, investor board seats are often unpaid. Thus, you make the money back once the company goes public or is acquired. The unpaid nature, coupled with the costs of the investment, makes buying a board seat an expensive endeavor for prestige or exposure. Lastly, boards take up time. Without the time and attention, it is unlikely that your tenure will be a success.
Millennial In The Boardroom
Being on the Board of Directors is both a rewarding and stressful experience. You can see the company grow from a high level and still contribute to its success. However, it isn’t easy to join a board. The nature of oversight without interfering in management requires communication skills, critical thinking, and an even temper. It also requires the willingness to learn new crafts, hone new abilities, and expand your network.
That said, millennials are the biggest consumer and employee cohort. Strategies must match our expectations. Otherwise, companies will be unable to connect with us. Reaching these goals is difficult if companies don’t get direct input for their strategic oversight.
Joining a board requires time and preparation. Yet, when you set your target on reaching this goal, it can be a rewarding experience.