Professional as well as social competence: Leadership is all about responsibility and setting an example. The demands and requirements for board members has certainly increased in recent years, in addition to new legal requirements.
In principle, the board of directors represents the top management of every public company and is responsible for the strategic orientation of that enterprise. However, their duties are often much more diverse. Board members may be networkers, coaches, managers in emergencies, consultants, enablers and more. In an ever growing complexity of the business world, these roles may become even more important in the future.
Playing to mutual strength
According to surveys, the majority of small businesses do not feel affected by the growing professionalisation of the board of directors. Such boards often include a banker from a local branch for instance, or a company lawyer as well as friends and family members. Of course, every company has different needs in their business strategies, requiring comprehensive skills and a good network of contacts in the field. It is therefore advisable to find personalities, who complement each other, contributing their varied competencies. This applies to professional backgrounds as well as age and gender. Of course, it is always helpful to have a lawyer on the board, but also an expert, who is familiar with the company’s operational business and knows how to work within the relevant industry network. A good team has to be made up of people who think in different ways, so that strategies are actively and critically analysed and not just lightly passed. An equally interesting group of board members may be former managers from competitors or members from larger companies who are interested in getting involved strategically and who still hold close ties to the current market. In order to make the process clearer and quicker, it may be beneficial to involve an external consultant, who assists in defining the respective profile to search for the right person for the position.
Digital Natives on the Board of Directors
A typical Swiss Member of a Board of Directors is male (~80%), over 50 years of age and receives compensation of between 10,000 and 40,000 Swiss francs per year. In Switzerland, issues of digitalisation and digital literacy are regularly neglected, almost systematically – especially in small and medium-sized enterprises – and this is often reflected in the type of board members elected. It is advisable to take the important criteria of digital literacy into account when appointing a board member. Not only sales strategies of a company, but also general processes are increasingly influenced by digitalisation. It is therefore absolutely essential, that digital skills and interconnectd thinking are incorporated at the top of a company and thus become strategically anchored.
October 20, 2020
