Competency, not Passion

Competency, not passion, makes great boards. I have this conversation every so often with a chair friend of mine who claims: “Give me passion to serve and I can create a competent board member.” I say, “Give me competence and a willingness to serve, and I can outperform passion every time.” Competence at entry certainly helps accelerate a board’s work rather than having to spend three years building competence.I see it every week in volunteer organizations where passionate members are voted onto a board whose work baffles them. I see it often in the credit union movement where volunteer leadership has been a proud industry hallmark, yet I meet board member after board member who can’t handle the intellectual load—not because they aren’t smart, but because they haven’t built the competencies to lead at a board level. I see it over and over again in companies where, rather than look for competent nominations, the CEOs dominate board appointments through the “good ole” network of women and men known to them.

Whether you agree with me or not isn’t the most important question. The most important question is: “What competencies should we be looking for in our next board of directors?” If you don’t have the competencies you need, you’re going to have to build them. If you’re recruiting or encouraging people to run for board seats, you can use competency profiles to scare away the less competent and highlight the value for the more competent.

I’ve worked with over 300 boards of directors and have never found it hard to find available potential board members with the competencies needed right within the membership. You simply have to identify what you want and have a disciplined search and recruitment effort. Remember: Identify the board for where you’re going, not for where you are.

So let’s get to the competencies. This is a conversation that benefits every board.

I suggest you’re looking for people with a mix of the following competencies:

Financial acumen. This is not expected to be at the CPA level. It is expected that a board member is capable of reading a spreadsheet, understanding key financial ratios, and understanding risk. The regulators are now looking for documented learning on this topic.

Strategy. Today’s board must be a “strategic advantage” in a more complex and fast-moving business environment. Without some capability dealing with similar challenges in the profit, government or non-profit environment, a board member cannot provide adequate strategic intellect to governance conversations.

Customer focus. It’s important to have board members with some experience having to assess, decide and track customer or member value. Everyone thinks they are a customer service expert. Unfortunately most of us are inexperienced with the psychology of creating stickiness, tracking customer/member value or creating a culture dominated by the “voice of the customer.”

Interpersonal competence. Assertiveness, managing disagreement, giving feedback, dealing with diverse styles, and being able to represent the credit union as an articulate ambassador are all expected here. Those current members who barely speak, never volunteer to represent the CU in the community, and shy away from tense board discussions need to be replaced.

Compatible and experienced with change. Look for board members who don’t fear change and have experience with change and transformation in their professional or service lives. Experience with substantive change efforts in any organizational domain counts here!

Technology capable. Those board members unable to navigate the Internet and who have trouble with the board Web portal drag down the governance process. Even better, find those board members savvy with the basics of social media, who at least know what Facebook, Twitter and blogs might mean to the organization—they will add even greater value in an increasingly electronic marketplace.

Governance competent. Finding new board members with governance experience is helpful. However, not all board experience is equal. Governance experience with complex organizations likely assures not only that all the other competencies are somewhat matured, but that the potential directors have experience with oversight, regulations, strategy and risk. If you really want to press this issue, set up a system to pre-qualify candidates by having them read a couple of governance books of your choice or take a governance workshop.

Start the Discussion

This list should start a robust conversation with your board. You may surface other relevant competencies. Remember we’re talking capable, not simply experienced. Having potential candidates write and speak to how they've actually applied competencies in real life situations helps a board sort out the capable from the less capable.

And, while you’re profiling the competency profile you want for your board, make sure you aim for the competencies and experience you expect to need five years out, not simply today.

Les Wallace, Ph.D.,  the 9Minute Mentor, is president of Signature Resources Inc. He is co-author of A Legacy of 21st Century Leadership and author of Principles of 21st Century Governance. In 2015, he will lead CUES’ Board Chair Development Seminar and the fall session of Director Development Seminar