A successful board member takes their role seriously, and makes a meaningful contribution. They should be able to make difficult decisions, to think strategically and to keep the bigger vision in mind while also contributing their unique perspective based upon their personal experience. A good board of directors can help the organization achieve its goals and objectives by providing direction and supervision. They will be motivated to see the business flourish and not afraid to express their opinions.
While having a large number of connections is important, organizations should focus on attracting those who are deeply about the cause and are willing to invest their time. It’s also necessary to ensure your board members possess the appropriate skills. According to Institutional Shareholder Services, the boards of Enron, Kmart, and the troubled retailer Warnaco all had board members who had a wide range of financial skills and knowledge–including former Stanford deans who are also accounting professors, a well-known Asian financier, and the former head of the U.S. government’s Commodity Futures Trading Commission. However, these credentials were not enough to prevent the companies from falling.
Participation in board meetings is also often viewed as an indication of a diligent member. However, as Stanford GSB adjunct professor of corporate governance Nell Minow points out, this measure alone isn’t enough to distinguish boards that are either good or bad. Attendance records for the boards at GE and WorldCom (which were both included on Fortune’s 2001 list as the most popular companies) have little to show.