7 Questions Every Potential and Current Board Member Should Ask:
Below are seven questions that you should ask yourself prior to joining a new board or even to ask yourself if you are currently on a board. The more positive answers the better. If you don’t know the answers then get the answers.
- What is the true financial condition of the company? Not just the P&L and Balance Sheet. You should also understand cash flow, inventory, gross margins, equipment and depreciation, etc.
- Is there a published Corporate Strategy? It may not be public but if it is at least written down you can better understand where the company is headed.
- Does the company have wholes or gaps in their current board? Are 6 of the 9 directors lawyers but there is no one on the board who has sales and marketing background.
- What are the three key items the Board is looking for in it’s next board member.
- Do you respect the current CEO and board members?
- What is the real time and effort commitment needed? This is beyond the board meetings, are their annual offsite meetings, do you need to travel to remote facilities to better understand the business, is there an expectation for additional work outside typical board activities?
- Do I feel I can make a difference?
You are probably not going to get a perfect score on these questions but then if everything was perfect the organization would not need your assistance on the board.