Why serve on a board of directors

While income and compensation should never be the key motivator in joining a board, we would be remiss in not saying it is a factor to be considered. Serving on a public or private equity board can serve as a side hustle for those looking to augment their income. Look at a board income as an annuity that increases your personal income when you are working and a way to replace the income from your W2 with a as a complement to your retirement savings and benefits when you are retired.

For leaders who are always curious to learn more things, board duties will provide a rewarding intellectual challenge. If the board serves a different industry than your specialty, you will need to become well-versed on the sector and its competitive landscape in order to make informed contributions.

Because the duties of board directors are dramatically different than those of operating roles, you will have to learn to look at organizations in a more holistic manner and develop a deeper understanding of a breadth of topics ranging from mergers and acquisitions, market growth campaigns and technological adaptions. As a board director, you will gain insight into a new company which probably has a different structure and way of doing business than yours.

The other board members will also be from various industries and roles, some of which you may not typically work with. The deviation from your norm will teach you news ways of operating and how different organizations and industries approach situations. I am grateful for this, as it reminds me to stay in a learning mindset.

This gift keeps my eyes open and it keeps me humble. I believe it to be a gift, even though it means that most of my joking references to Internet memes get confused stares. I serve on the board alongside incredible individuals who are not of my generation and it keeps me going. For example, I served alongside Bob Carter, the expert behind the global philanthropy specialists group, Carter. He needed only to inhale as if he might say something and I had my notebook and pen ready to jot down the wisdom.

Like nearly everything in life, I find that you get what you give when it comes to board service. Like most, I have a busy schedule to juggle, and I live in Chicago rather than Baltimore. The more I care and contribute, the more I grow. To fellow folks under the age of 40 who feel alive when they visit cultural organizations: Please consider learning more about joining a Board of Directors and contributing your support and service.

The perspective is needed and it is valuable. Heck, just become a member! These organizations need support in order to survive and thrive. Curious and want to learn more? They will need to work hard, too, but they can start on a more level playing field. We found that boardroom capital is built on five different types of intelligence: financial, strategic, relational, role and cultural.

Can you talk in numbers, not just in words? Directors cannot fulfill their fiduciary duties without being able to quickly draw an informed opinion on to the capital structure of the company; its financial gearing, the sustainability of cash flows, or its risk envelope. These fundamentals have become even more important in wake of numerous audit-related scandals and increased scrutiny from regulators.

Being fluent in financials is one thing. Can you then translate them into strategy and back again? Is there a real credible link between the strategy and the projected financials?

ESG environmental, social, governance issues are now a top priority and an area in which any board aspirant must be knowledgeable. In our research, we identified four different ways that directors have pushed companies to understand, articulate, and measure sustainable value:. You should also be familiar with new business models and evolving sector-specific strategies be they services, software, technology or digital to name a few recent examples and be comfortable with a faster pace of change than boards have ever faced in the past.

Some organizations like the Guardian Media Group in the UK boast of being able to tear up and replace their strategic plans every 13 weeks. If you prefer to work alone, then board service may not be the right way for you to work with the organization. Consider providing pro bono professional services or direct-service volunteering as alternatives to board service.

Do you have the willingness and the ability to assist a nonprofit organization with fundraising? One of the primary responsibilities of the board is to ensure that the organization has adequate financial resources to carry out its mission.

Many organizations have a fundraising policy for board members. These policies typically request board members to contribute personally. Connections and introductions to donors, participation in fundraising events, personal notes on solicitation and thank-you letters, and direct solicitations are just a few of the ways in which board members can make a difference in terms of fundraising success.

The amount of involvement in fundraising varies greatly by organization, but prior to serving on a board, make sure that you will be comfortable making a personal contribution and asking others to contribute to the organization. After evaluating these four questions, take our readiness quiz to find out if you are ready to serve on a board. Board Leadership Research and Leading with Intent.