Start with the gap, not the person
A skills matrix is one page: the capabilities this board needs against the ones it has. Finance and audit, the sector, international, technology, people and remuneration, governance experience.
Filled in honestly it usually shows two gaps and one duplication, and it changes the brief before a single name is discussed.
What to look for in a board-level hire
- 1. A capability the board does not already have, named in the skills matrix before anybody is approached.
- 2. Independence of mind: a record of disagreeing with a board or a chief executive and being right, or being wrong gracefully.
- 3. The time to do it properly, including the weeks a crisis takes, checked against their other commitments.
- 4. Judgement about the line between governing and managing, so they challenge the executive without trying to run the company.
- 5. Fit with the chair and the board as it is, tested on how they would handle a disagreement, not on whether everyone likes them.
The three board searches, and how they differ
A chair search is the one most often underestimated. It is the only board appointment where fit with a single individual, the chief executive, is a legitimate primary criterion.
| What decides it | Typical fee | |
|---|---|---|
| Non-executive director | A named capability gap | Fixed project fee |
| Committee chair | Technical depth plus the standing to chair | Fixed, at a premium |
| Board chair | Judgement, and the relationship with the chief executive | Fixed, highest of the three |
Where board searches go wrong
- Appointing a friend of the board. It is fast, comfortable, and removes the challenge the seat exists to provide.
- Hiring for the company you were two years ago.
- No induction. A non-executive with no proper onboarding takes two years to be useful and often never is.
- No evaluation. Boards that never assess their own performance accumulate people who have stopped contributing.
Diversity of experience, honestly
A board where everybody comes from the same function and the same kind of company will agree with itself. The point is not representation as a target, it is that a board which cannot disagree cannot govern. Write the matrix, and appoint against the gaps in it.
Common questions
What does a board search cost?
Usually a fixed project fee rather than a percentage, in the low tens of thousands for a properly mapped search, with a premium for committee or board chair mandates.
What should you look for in a board-level hire?
Five things: a capability the board lacks, named in advance; independence of mind; the time to do it properly; a clear sense of the line between governing and managing; and a working fit with the chair. Reference them on how they behaved when a board disagreed.
What is a board skills matrix?
A one-page comparison of the capabilities the board needs against those it has. It is the honest starting point for any board appointment and it usually changes the brief.
More of them, on hiring, contracts and what a fractional engagement costs, on the fractional executive FAQ.