A board member who is successful takes their responsibilities seriously and makes a meaningful contribution. They must be able to make difficult decisions, think strategically and keep the bigger picture in mind while contributing the perspective of their own experience. A good board will help the company achieve its goals and mission by providing guidance and supervision. They will be motivated to see the business flourish and will not be afraid to share their opinions.
While having a lot of connections is crucial for organizations however, they should also focus on attracting people who are dedicated to the cause and willing to give their time. It is also essential to ensure that your board members have the necessary abilities. 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 were accounting professors, an eminent Asian financier, and the former head of the U.S. government’s Commodity Futures Trading Commission. However, these credentials weren’t enough to prevent the businesses from falling.
Participation in board meetings is also often thought of as an indication of a diligent member. But as Stanford GSB adjunct professor of corporate governance Nell Minow points out, this measure alone doesn’t distinguish the boards that are good or bad. The attendance records for the boards www.boardcontest.com/what-is-an-advisory-board-and-does-your-organization-need-one/ at GE and WorldCom (which were both listed on Fortune’s 2001 list as the most-admired companies) have little to show.