Being a company director can be a fulfilling and rewarding role, allowing people to experience a variety of businesses and use their skill set in a constructive way.
But taking on that first board position can also be a big step. Here are some top tips for those preparing to become a company director for the first time:
1. Do your due diligence
Even before taking on a board role, it’s essential to do some research to make sure the company is the right fit and that your values align. There is usually useful information available online, so a simple Google search is a good start. Tap into your network to see if any of your contacts can give some insights or background on the company. Don’t worry too much about whether you know enough about the industry already – bringing the right skills set to the board is more important than having existing knowledge.
2. Expect a learning curve
Once you become a company director, give yourself time to learn about the company and its operations. It can be a very steep learning curve but it’s important to do your homework.
Ask for a copy of the business’s strategic plan, the last few board packs, and any other information you can think of. Talk to the CEO and CFO about the running of the business. Don’t be afraid to ask questions – the more you know, the better you can fulfil your role.
3. Get to know other board members
It’s useful to forge relationships with other members of the board, particularly the chair. This gives an opportunity to understand the dynamics of the board and can help avoid “group think”.
4. Be prepared
Always come to board meetings prepared. This means reading the documents and doing any other research required to take part in the discussion and decision-making. Not doing so is disrespectful to management who has taken the time to prepare the reports and other documents.
Directors who don’t do their preparation get found out pretty quickly; it’s not a good reputation to have and will impact on any future board positions.
Come prepared to ask challenging questions, both of the board and of management. It can feel adversarial at first, but it is part of the job of being a company director.
5. Keep in contact with management
Keep the lines of communication and dialogue open with management, in a respectful way. You don’t want to get in the way of them doing their jobs, but you also don’t want to limit your knowledge or involvement in the business to the board alone.