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10 Questions to Increase Your Strategic Impact as a Board Member

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The role of corporate directors is to be trusted advisers to the CEO consistent with their duty of care and to exercise oversight on the shareholders’ behalf. To confirm they are fulfilling this role, directors need to periodically self-assess their boardroom performance. To facilitate this self-assessment, this issue of Board Perspectives offers 10 questions that directors should ask themselves:

  • Am I effective at pattern recognition? What really sets an exceptional director apart is the ability to distill a deep understanding of data, information and knowledge into real “aha” insights they can share in strategic conversations.
  • Do I bring a detached perspective into the boardroom to see things as they are? Directors should be objective and data-driven and expect an engaged culture with feedback loops to enable timely corrective action.
  • Am I challenging the assumptions underlying management’s decisions? Directors should pursue constantly the validity of the assumptions underlying the strategy to ensure its relevance in view of current and expected market developments.
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  • Is my EQ high enough? Board members should have a strong EQ (emotional quotient) as well as a strong IQ for effective, collaborative decision-making and relationship building.
  • Am I thinking enough about disruptive innovation and how it will manifest itself? In rapidly changing markets, directors can act as a sounding board to the CEO to address changes in business fundamentals.
  • Am I wired for risk but not for opportunity? Directors should be mindful of their language and tone in the boardroom, focusing on opportunities as well as risk mitigation.
  • Am I making a positive contribution to board conversations? Each director should assess how they can contribute to effective dynamics in the boardroom.
  • Do I foster an environment of trust based on values? Open, honest, and transparent communication facilitates the trust-based culture whereby the CEO feels comfortable sharing both good and bad news.
  • Am I taking time to learn so I can prepare to participate in strategic conversations? Directors should take stock of their strengths and limitations as a board and focus their questions on strategic or policy issues rather than getting mired into the weeds of day-to-day operations.
  • Am I effective in understanding and offering advice to the CEO? Directors should ensure they are contributing value in the boardroom — consistent with their duty-of-loyalty obligations — with the objective of helping their CEO succeed.

This issue of Board Perspectives discusses each of the above questions.

In summary, the role of the board extends beyond governance and oversight to offering diverse perspectives and constructive feedback as advisers to the CEO in shaping the corporate strategy, identifying market opportunities and emerging risks, allocating capital, evaluating performance, and formulating succession plans. Building trust is paramount in all of these activities.

(Board Perspectives — Issue 178)

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Protiviti India Member Private Limited is the India Member Firm of the global network of Protiviti firms, a group of independent consulting firms helping companies solve problems in finance, technology, operations, governance, risk and internal audit.  Protiviti Member Firms are separate and independent legal entities, are not agents of other firms in the Protiviti network, and have no authority to obligate or bind other firms in the Protiviti network.

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