Tips for successful transition from executive to board member

The transition from executive to board member is probably one of the most important career steps for many managers. It culminates their entire career and gives them a certain acknowledgement and social standing that make the board member one of the positions most sought after by those entering the last stage of their career. 

Members of a company’s board of directors are involved in three crucial areas: 

• Firstly, the discussion and approval of the most important decisions concerning corporate life.  
• Secondly, the control and supervision of the executive team’s ability to implement the decisions taken, achieve business goals, and fulfil commitments to shareholders and other stakeholders. 
• Finally, the provision of support for the work of executives, giving them advice and strategic guidance. 

However, a successful track record as an executive does not guarantee a successful career as a board member. The roles of executives and board members are poles apart because they are in different stages of business management. Indeed, according to our experience working with many board members and also as revealed in academic articles and studies, there is a risk of board members getting involved with or interfering too much in the role of executives – which may endanger both the running and control of the company itself. 

It is therefore important to remember that the shift from executive to board member also means a different approach and responsibilities. Executives concentrate more on the company’s day-to-day management, whereas board members have a more strategic, long-term outlook. 

Key traits of good board members 

One concern often mentioned by participants in Esade programs for board members, and also by people who contact executive search firms like us offering advice to senior executives and companies about filling vacancies on their boards, is the need to understand better the key factors for a successful transition from executive to board member. So, we consulted more than 300 professionals (71% board members) and, drawing on their experience, we identified certain patterns that could help aspiring board members. 

The challenges facing executives seeking to become board members are unique depending on what they learn during their professional career: 

• The skills developed, the knowledge acquired, situations and circumstances experienced, results achieved, the mistakes made, and difficulties handled.  
• This is in addition to the relationships forged on the basis of trust, the visibility and the knowledge available on the market about the value they can contribute.  
• Equally important is how you construct the narrative of these elements of value and the impact you make when interacting with advisors, opinion leaders and, finally, the decision-makers involved in board appointments. 

Contributing factors for successful transition 

Following the analysis published in the report Gestión de la transición de directivo a consejero (Managing the transition from executive to board member) by the Esade Centre of Corporate Governance, we pinpointed several factors to facilitate successful transition: 

1. Leading transformative processes

Apart from having held positions of leadership as a chief executive or member of a management committee, the successful track records of persons at the helm of major corporate changes resonate particularly with boards of directors. The successive crises of recent years bolster this aspect. Indeed, boards want professionals who have experienced and successfully handled complex management situations like those their company must deal with in the future. 

2. A good network of contacts 

A good network of contacts is very important for joining the board: investors, shareholders, presidents, other board members and persons that influence decisions of this sort. It must be said that different ways of joining the board have different priorities according to gender: executive search firms recruiting talent for boards are more important for women (2nd most successful channel) than for men (4th most successful channel). 

3. A differential narrative 

Develop a good narrative about the distinguishing factors of your professional career and profile as a potential board member. This requires considerable introspection and must be conveyed consistently on different channels and media (bio, social media profile, elevator pitch, etc.) together with details of what you can do and proven outcomes. 

4. Crucial knowledge 

Having the key knowledge for being on a board (strategic outlook, knowledge of the industry or risk management, for example), is just as important as being able to demonstrate certain soft skills and abilities essential for success in the board’s internal dynamics (integrity as a professional, having the courage and strength to express an opinion, or have sound judgment). It must be underlined that aspects related to soft skills are usually appreciated more by persons already on several boards and seeking to join another one than by those who have just joined a board for the first time. 

5. Get your company involved  

The fifth finding is that you must involve the company where you are an executive in your drive to join the board: they can help your career more than you think. Get you onto the board of an investee company, or a foundation’s board of trustees, or the board of directors of an association to which your company belongs, or refer you to an executive search firm, or support your training in corporate governance: these are some of the initiatives you could suggest to win their support. 

6. Prepare your interviews 

Finally, don’t forget to prepare well for interviews with executive search firms (if intermediaries are involved) or board members you meet. Before these interviews, document yourself and contact people who know the company well in order to grasp the values, culture, aim, strategy or the most important challenges they are facing. You should also be familiar with the interests and expectations of the company’s main shareholders and understand the board’s involvement in the company’s governance model. Relying on your wits or ability to improvise and deal with unfamiliar situations is not always the best way to achieve your aim.  

The transition from executive to board member 

In short, the transition from executive to board member is a chance to continue contributing to your company’s success, but it also means new personal challenges regarding the development of knowledge and skills to help you settle into the new position, and also a new mindset concerning the responsibilities you will have as a board member.