Human Resources Issues for Senior Management
Issue link: https://digital.hrreporter.com/i/747024
20/CANADIAN HR STRATEGY 'I am a very hard worker,'" says Bradley. "(But) you have those functional skills (and) you have to be able to have, in your expe- rience, strategic thinking and strategic decision-making." There are a lot of people putting up their hand thinking they've got the right skills and experience and they'd like to be directors in various entities, she says. "When people put up their hand to be directors, I think they have a passion for the business, for the opportunity to be part of the strategic dialogue." Networking through memberships in various groups such as ICD and CBDC is always a good idea, says Jeffrey to "boost your pro le." And once an executive has her name out there as a viable candidate, she shouldn't "be afraid to reach out to the chair of the nominating and governance committee of that board and express an interest and a desire in being considered," she says. From the board's recruitment perspective, there is a lot of tal- ent available, especially in Canada. "It's all about nding the right talent at the right time for the right board," says Bhardwaj. JUDGING SUCCESS Looking at a company's bottom line is just one way to evaluate a board's performance, according to the experts. From the out- side, often a company's results are a good indicator. "Good boards drive good performance," says Bradley, and from the inside of a company, a board is doing a good job if management nds "decisions are being respectfully debated and arrived at, at a comfortable pace." A board's vision and how it is travelling forward is fundamen- tal, according to Bhardwaj. "Bottom line is an important one, but it's not the only one." As well, there are now environmental and social bottom lines to be considered, he says. "A good, functioning board would be mindful of how it would measure and evaluate its success." Questionnaires and one-on-one interviews between the board chair and each member are best practices in evaluating a board's performance, according to Jeffrey. "It's not only the bottom line but it's also a board where there's collegiality, respect; where the right decisions are made in a spirit of everyone thinking issues through and communi- cating their points of view." A big part of an effective board is constructive dissent, she says. "You want directors not to say, 'I agree,'" says Jeffrey. "It is their duty to express dissent, but in a constructive way." Sometimes, speaking in a negative way is hard to achieve gracefully, but it is a needed quality to be "able to probe and prod when needed around risks and opportunities around the company," says Bradley. "You have to have a person that has the courage and the can- dour to ask the right questions." prove their worth, she says. Clearly, you want people with business acumen that is rela- tive to that business, and it is imperative a good director has solid industry knowledge to "exercise hindsight, oversight and foresight," says Bhardwaj. "You are really looking at the long- term sustainability of the organization." In their effort to seek new blood, boards are also identi- fying strengths, weaknesses and gaps, identifying emerging strategies and making sure they have the right con guration, say the experts. "A skills matrix is something any good board would have in place, so you can identify what you have and what you might need," says Bhardwaj. As well, certain soft skills are needed. "When you are on a board, you are in a highly nuanced en- vironment," he says, and directors needs to be asking the right questions at the right time, with a view to long-term success, not being drawn into short-term wins. Gone are the days when the "clear focus" was that the vast majority of board members were former CEOs, says Jeffrey, adding there is more awareness of "speci c skills that will add value to the business," such as senior-level experience on risk, audits or human resources. "There's an opportunity to recruit individuals with a se- nior-level, functional area of expertise that adds value to the business." BECOMING A DIRECTOR So, how does one become a member of a board? Training is available at various institutions such as the ICD, the CBDC and McMaster University in Hamilton or the Kellogg School of Management at Northwestern University in Evanston, Ill., Yale University in Newhaven, Conn., and the National Association of Corporate Directors (NACD) in Washington, D.C. "It's really important for (prospective members) to under- stand the rules of governance," says Remick, and prospective executive board members must gain expertise in such areas as audit, compensation, risk management and regulations. "Wherever you are on the learning journey of a director, whether it's somebody that's on a board that wants to increase their knowledge in how audit committees function, we work in professional development around that," says Bhardwaj. For some executives, the best way to be considered as suit- able board material is to increase their knowledge of strategic thinking. "You can't just have functional skills, you need an ability to contribute to the dialogue on a strategic level," says Bradley. "To be a board member, you really have to have some involve- ment on strategic conversations because that is most of what the board does." Potential candidates should look for "opportunities to be part of strategic conversations" at their current business, she says. "That's a missing concept sometimes because people think,