Human Resources Issues for Senior Management
Issue link: https://digital.hrreporter.com/i/747024
18/CANADIAN HR STRATEGY I invisible to many but wielding considerable power, boards of directors have con- tinued to evolve through the years in line with the changing business world. But has their development been fast enough? Just one-third of respondents to a recent survey say the current makeup of their board is not enough to meet their company's transformational goals. The survey was looking at the dichotomy between the need for bringing in currency and new skills and multi-generational, multi-cultural capabilities while, at the same time, doing it in a strategic and thoughtful way, according to Tierney Remick, vice- chairman of board and CEO services at Korn Ferry in Chicago, which released the survey of 156 respondents. "Historically, boards always wanted sitting CEOs, recently retired CEOs, maybe CFOs (but) because there has been such a growth in the number of board opportuni- ties, organizations have had to seek the skills in a number of different forms," says Remick. "It's unusual today to see a current, sitting CEO serve on a number of outside boards; the time commitment alone is prohibitive." Change in the composition of many boards has happened in the last ve to seven years because of technological change and government mandates placed upon boards to diversify, she says. "I think there's a better balance." CHANGING SKILL SETS So, what's needed from today's board? Providing strategic advice for management is one of the best ways a functioning board of directors can provide value for a company moving forward, say the experts. "It's really key for directors to have a good understanding of what the strategy of that business is and to understand that their goal is to help management ful ll that strategy," says Noralee Bradley, a partner at law rm Osler in Calgary. It is vital for a board to provide "strategic oversight," according to Rahul Bhardwaj, CEO of the Institute of Corporate Directors (ICD) in Toronto. "(The ideal board is) able to have an appreciation of strategy, development of strategy, measuring and track- ing of strategy." A board of directors' ideal function is to provide oversight for a management team, instead of running the day-to-day business, say the experts. "Effective directors are those who are able to work with their board colleagues to directors have to keep up with a changing landscape Building By John Dujay a Better Board Building a Better Board Building PHOTO: SHUTTERSTOCK