Future-Focused Board Succession Planning
Board succession is all about integrated thinking, foresight and decision-making rationale. It is common practice for the governance committee to develop and maintain a matrix that outlines the skills, age, length of service, and background of each sitting director. A forward-thinking board looks at the next five to ten years and defines skills, experiences and overall professional backgrounds that will help build competitive advantage for the company. This matrix can then be used to inform the board’s decisions regarding recruitment of new board members who will add real value at the top of the house. When considering board recruitment, how can the board think in “new boxes?” What questions could directors ask that would embrace 21st-century issues and advance recruitment efforts beyond the typical skills matrix for new candidates? Here are a few:
Have we invited long-term shareholders to contribute board candidates to our recruitment list?
Do we have a diversity plan that includes a multi-gender, multi-talented, multi-ethnic, multi-generational, and multi-national focus?