"Our board is a real asset." Yes, but do you have the right board portfolio? Just like your financial portfolio the board represents a portfolio of assets. Each member is a separate "account" and contributes something unique. You want a diversified strategic portfolio that yields an optimal total return.

How do you build a strategic board portfolio? You wouldn’t leave your investment portfolio to chance. Why would you leave your board composition to chance when it comes time for the nominating committee to put together a slate?

To:

• determine the skills and experiences needed

• identify, recruit, and select candidates

• prepare directors (new and veteran) for service

Determine the skills, talents, and experiences needed to serve the organization’s strategic priorities. Perform a written inventory, including such factors as leadership, professional training, business and financial acumen, networking and special skills. This will show when you need to bring needed assets to the board to prepare for future losses; or new attributes that may be missing. It’s important to be inclusive and to seek strategic diversity; i.e. diversity of ideas and experiences.

Boards are a renewable resource. Few boards are so perfectly composed that the effort should be devoted to maintaining the current composition. For the organization lucky enough to have just the right mix, the priorities and environments are constantly changing, demanding active change throughout, including the board.

• Who’s leaving the board (resignation or terms); what expertise will be lost?

• Who should leave the board (performance or attendance)?

• What skills, talents, and experiences are needed in the next years?

Identify potential candidates based on written criteria. Members of the nominating committee asking each other if they know of someone is limiting and can lead to cloning. Be constantly alert for prospective directors and create a pool of potential candidates from which to draw diverse talents.

Two common practices should be avoided. Board terms are a beautiful thing and an opportunity. Because a director’s term is ended and that person is eligible for another term, it is not an "automatic" nomination. With criteria in place, if that person matches the needs, fine. If not, recognize that person’s service and explain that other assets are needed for the strategic priorities. The same is true for poor attendance or performance.

Directors elected to a board serve the organization and the mission. They do not "represent" a constituency. The success of the "portfolio" is the collective contributions of its individual members. Representation should be left to legislative bodies.

Preparing directors for board service goes beyond an "orientation" session. It’s a board responsibility to ensure members are prepared to make informed decisions.

Expect big dividends. Not only will you have a top performing board, your board members will appreciate being part of a carefully maintained portfolio of assets.