Get Known

Strategies to getting known

The Skills Matrix

In yesterday's blog, I suggested that you build a team around you in your quest to secure a directorship. One of the first tasks you need to undertake with that team is to determine what you think that you have to offer as a director, by corporation and by sector. Be mindful of the key issues both the media and government are emphasizing:

• fewer than 6% of independent board leadership positions in Canada are held by women;
• typically few women are appointed to the audit, compensation and nominating committees of the board;
• those F500 companies with the most female directors outperformed those with the fewest ;
• those boards yielded a 26% higher return on invested capital and 16% higher return on sales;
• boards which have a diverse membership tend to have a positive CSR profile.

Consider comparing your expertise to the targeted needs of the company in which you are interested and the broader sector you wish to be a part of. What are these skill sets?

• governance leadership
• governance preparation
• board committee experience including: audit, strategic, nominating, social responsibility
• corporate financial performance
• diversity
• public policy
• international experience
• financial accounting
• IT
• marketing

Targeting Companies

Your next step would be to develop a list of companies that best fit your skills and expertise. Be aware that the Canadian context provides some unique challenges. Firms in the energy and materials sector account for about 15% of the S&P/TSX composite index. And, also in Canada, the resource and materials sector have the lowest share of board seats held by women at about 7% nd 6% respectively. The low representation is perhaps not surprising given that there is a thinner pipeline of women with industry specific knowledge. 

Consider , however, that these sectors have been scrutinized with the introduction of Bill C-60 as well as the Foreign Officials Public Corruption Act. Women with international public policy and risk management/assessment expertise as described by Ernest and Young (2012) may prove welcome additions to Boards of corporations in these sectors as they attempt to mange government and public scrutiny.

An easier path for women might be to pursue directorships in industries where there is a robust pipeline for women with industry specific knowledge. Stats Can data shows that 60% of workers in the finance and insurance industries are women. 

Would be directors might also want to consider firm size when targeting sectors. The smaller the frm, typically, the fewer the number of women on the board. The larger the firm, the more women on the board.

Not only in Canada, but globally, larger firms tend to be early adopters of gender diversity policies at an executive and board level. These firms often have a higher public profile and tend to be under greater scrutiny to improve firm performance. They also tend to have more resources and larger networks at their disposal to recruit talent. 

Volunteer

Serving as a Board member of a non-profit can help building a network of director colleagues. It can also be used as an effective starting point in one's career as a director. 

Such a step can serve as a proving ground for a new Board member, introducing her to concepts of board functioning. Good governance has certain principles common across all sectors. These are : 

• transparency
• clear allocation of roles and responsibilities
• financial probidity
• accountability and 
• looking at outcomes. 

There is an important caveat to consider. Non profit directorships are typically not posted. So, any prospective candidate should be prepared to initiate a conversation either through an existing board member or through the local Volunteer Bureau or United Way. 

Consider carefully the advantages provided by volunteerism. These can lead to an expanded network, an opportunity to learn elements of governance and an enhanced public and sometimes industry-widw profile. More on this tomorrow.