A company is ultimately only as good as the people who comprise it, and a company’s management similarly is only as good as the individuals who comprise its board of directors.
But what processes actually exist for selecting a board director? Too often, Russell Reynolds senior member Anthony Goodman writes, its comes down to “who do we know?”.
Such an approach might breed comfort, and sometimes may even work. But it is not the way to go about selecting a board member, Goodman says.
Such selections must be based on long-term strategy, and that means “a candid analysis of the board’s current composition, identifying future needs and developing a long-term strategy for board recruitment,” he writes.
The use of outside advisors often is helpful in the process. Goodman examines some of the methodologies that permit companies to make sound and strategic selections in their recruitment of new board directors that best serve companies’ long-term strategic goals.