What Are Board Members Really Thinking?

Steve WeberNACD Governance Fellow and Board Advisory Service

May 15, 2015

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Portal Dream Team

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What is Their Job?

• Oversight of risk and strategy!• The efficient and effective…• …so that their organization is successful - short and long term

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Portal Dream Team

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What is NOT Their Job?

• Daily management of the company• Hiring/managing the CEO’s direct reports• “Supporter” OR “disrupter” of the CEO• Being a meeting/teleconference warrior• Being adept at speed-reading large volumes of data

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Portal Dream Team

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What Do They Say About their Job?

• Private Companies:*• Time commitment is rising• Director turnover is increasing• 1/3 have formal CEO succession plan• Pressures from stakeholders

*2014-15 NACD Private Company Governance Survey

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Portal Dream Team

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Public Companies*• Want to re-allocate risk oversight responsibilities• Time commitment is rising• Formal CEO succession plans increasing• Shareholder executive compensation concerns• Most use lead directors• Lack of satisfaction Board info on Cyber and IT

*2014-15 NACD Public Company Governance Survey

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Portal Dream Team

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How Do They Feel About Technology?• Almost all feel it is a necessary investment!

• However….• Not knowledgeable• Not know what/how to ask questions• Not want to be embarrassed

• Many still believe “payroll system” story• Cyber-security trumps everything else!

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Portal Dream Team

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So… How Can We Provide Value?

• Provide information that DIRECTLY answers the questions needed to do their job

• Use iPads/Portals to be Effective (not just efficient)

• Answer questions that arise with nearly every topic• “Good news or bad news?”• “Why or why not?”• “What do I need to worry about?”

• Or “How will this make us win in the marketplace?”

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Portal Dream Team

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In Other Words…

Save them time getting to outcomes!!

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Portal Dream Team

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What Makes This Hard?

• Each director is different in how they do (or even view) their job

• Often can’t articulate their questions

• Lack of day to day understanding of the business

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Portal Dream Team

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Don’t Worry – There is Hope

• Need to efficiently engage between meetings

• Listen closely to what directors say, or not say• What do they repeat, or re-phrase?

• How do you know you are “there?”• “MAKES SENSE”

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Questions?

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Portal Dream Team

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Feedback

Thank YouSteveweb @att.net

317-902-2849 (cell or text)@steveweb9 (twitter)