Five reasons qualified board members deliver better results

1: They come prepared

Qualified directors understand how a good board meeting should run.

As one example, qualified board members appreciate the value and function of the board book, a package of material that contains financial statements, strategy notes, HR decisions, and other critical information.

A good board member knows how to read the book and attend meetings in a prepared state.

High-performing directors want to ensure that they are well-prepared for the boardroom without being educated on other people’s time.

2: The questions they ask are smart and intelligent

The board should ask questions to ensure the firm is living up to its outlined purpose and values and following through on its strategy.

In addition to the question itself, the tone of the question is crucial. During meetings, executives and directors should be able to exchange ideas by asking open-ended questions.

3: They can cultivate each other’s skills

The best directors network with one another and with directors at other firms, which can improve knowledge and skill sets for everyone. Qualified directors learn how to network and build sustainable relationships.

4: They understand they shouldn’t try to run the company

Qualified directors understand their roles. You’re a director. You aren’t management. You are not one of the company’s executives. It is the job of the board to advise the CEO. Asking good questions rather than dictating strategy is the key to success.

5: They know that committee membership is crucial

A director must understand the business of the company. The best way to learn more about these intricacies is to join one of the board’s committees, such as the audit or finance committee.

“Having a specific task and responsibility as a committee member increases the accountability of individual directors. The board as a whole can become more accountable by separating the outside directors from management for certain decisions made by committees,” says David W Duffy, CEO of the Corporate Governance Institute.