Think of an Olympic athlete poised on the podium, about to receive the gold medal. A question that many would ponder at that moment is, “So—what’s next?” You may be experiencing a similar feeling if you’re a typical high-achieving Wharton graduate who has reached the pinnacle of your career. Perhaps you’re wrapping up another successful CEO or C-suite role and thinking about what lies ahead.
Experienced executives at this stage in their careers often consider becoming board directors. Serving on a board is an interesting opportunity to stay intellectually challenged, utilize your skills and experience, and make an impact on an organization.
But before you can decide if this is something of interest, there are a couple of basic questions to consider. First, what is a board of directors? It’s a group of individuals elected to oversee the strategic direction and activities of an organization, making sure it operates with shareholders’ best interests in mind. Second, what kinds of boards are there? Two types: for-profit (or corporate) and nonprofit. Typically, nonprofit board directors aren’t compensated, while corporate board directors are paid in cash and stock. Within the corporate board category, there are public boards (for firms traded on a stock exchange and legally required to have a board of directors), and private boards that are backed by venture capital or private equity firms.
Now that we’ve covered the basics, what are the ABCs of finding the best board for you?
A for Alignment
A fundamental question to ask is: Are your goals aligned with the company’s goals and mission? In other words, is there a fit between your interests and skills and what the corporation is looking to accomplish? You need to ask yourself, “Why would I want to join this board?” Determine if the timeline for what the company wants to achieve is manageable within the timeframe for which you plan on participating as a board director.
B for Benefit
Another critical aspect to consider is mutual benefit: How will being on the board provide you with a new, enriching experience; potentially an expanded network; and the ability to utilize your expertise to coach and guide the management team of a company? Likewise, the company needs to assess your candidacy as a board director and determine your potential superpowers and how those unique powers would benefit the organization, the management team, and shareholders. If you do get selected for the board, there will be an expectation that at every meeting, you will be raising questions and sharing ideas that align with your superpowers.
C for Culture
As with any organization you’re considering being a part of, there must be a good culture fit. Do the company values align with yours, and is the board culture one that is collegial, yet allows room for tough questions, discussions, and informed interaction? Are the board and the management team people who would be appealing for you to work with and form relationships with?
This introductory blog is meant to provide you with some fundamental aspects of board service to consider before you start searching for a board role. In future blogs, I’ll explore other aspects of what it takes to not only join a board, but to have the kind of positive impact you’re looking to make.
Those of you interested in exploring board service may want to consider joining Wharton Alumni for Boards, a community free to Wharton graduates that is focused on getting more talented Wharton alumni onto boards.
Shaz Kahng WG89 is a multiple-time board director and CEO and a founding member and board director for Wharton Alumni for Boards. She has served on boards for public and private companies, including GoPro, InsideTracker, and Gymboree. She is also a board director for the nonprofit LiveGirl. Previously, Kahng was the CEO of Gymboree and Lucy Activewear and led global businesses at Nike. She is the author of the award-winning Ceiling Smashers series of novels that spotlight what it takes for female business leaders to succeed.
