{"id":85842,"date":"2025-05-17T06:06:00","date_gmt":"2025-05-17T11:06:00","guid":{"rendered":"https:\/\/www.success.com\/?p=85842"},"modified":"2025-04-15T18:07:43","modified_gmt":"2025-04-15T23:07:43","slug":"how-to-select-board-of-directors","status":"publish","type":"post","link":"https:\/\/www.success.com\/how-to-select-board-of-directors\/","title":{"rendered":"Strategically Selecting a Board of Directors: The Key to Helping Your Growing Company Succeed"},"content":{"rendered":"\n

Gathering a board of directors to lead your company is no easy task\u2014and it shouldn\u2019t be. The board you choose will have a massive influence and impact on your company\u2019s future, so being strategic about who you choose is essential for your business\u2019s ongoing success. <\/p>\n\n\n\n\"Pyramid<\/a>\n\n\n\n

We asked experts to share what to look for when selecting a board of directors, plus when to start the process, if you haven\u2019t already. Read on for insights on how to get started.<\/p>\n\n\n\n

Why being strategic with board selection matters<\/h2>\n\n\n\n

Needing to gather a board of directors usually means that your company is growing fast and moving in a great direction\u2014congrats! But why is it important to be mindful with your selection? <\/p>\n\n\n\n

From voting on company bylaws and approving the annual budget<\/a> to having a say in succession planning and guiding your business\u2019s direction, board members have significant power over your company. In fact, a board of directors collectively has more power than a CEO in most structures.<\/p>\n\n\n\n

\u201cUltimately, a strategically assembled board isn\u2019t just about governance\u2014it\u2019s a powerful catalyst driving the company\u2019s growth, vision and long-term impact,\u201d says Nicky Rishi, the founder of MissPoppins<\/a>, a parenting support platform. \u201cAt MissPoppins, this carefully chosen team of advisers doesn\u2019t just guide us through challenges\u2014they actively help shape our future.\u201d<\/p>\n\n\n\n

You\u2019ll need an effective, aligned board with a variety of skill sets to help your business overcome challenges, bring on positive change, and set and achieve goals. Carefully choosing members is the best way to ensure a well-rounded board.<\/p>\n\n\n\n

\u201cMy belief is everyone should have outside advisers, whether they are board or advisory board,\u201d says Therese Fauerbach, co-founder of The Northridge Group<\/a>, a management consulting firm, and chair of its board. \u201cAn outside perspective is very important to leading with facts and observations that internal employees can\u2019t see.<\/p>\n\n\n\n

\u201cWhen a company has a problem,\u201d she adds, \u201cit is the board\u2019s responsibility to stand in and help run the company, especially if the CEO is gone.\u201d<\/p>\n\n\n\n

When to start looking for a board of directors<\/h2>\n\n\n\n

New startups should typically start forming a board of directors when they get their first outside investors.<\/p>\n\n\n\n

\u201cFor early-stage companies, the most common reason to assemble a board of directors is upon the first qualified financing, where a company takes on outside capital and professional investors end up owning a large percentage of preferred stock,\u201d says Coco Meers, the co-founder and CEO of Equilibria<\/a>, a women\u2019s wellness company.<\/p>\n\n\n\n

\u201cInvestors, or representatives of their choosing, often require the right to weigh in on major company decisions like subsequent financing rounds, M&A prospects, additional executive hiring, annual budget approval and much more,\u201d she adds.<\/p>\n\n\n\n

What to look for when selecting a board of directors<\/h2>\n\n\n\n

If you\u2019re looking to form a board of directors, it\u2019s likely you already have a few candidates in mind. But before reaching out to your top prospects, consider these factors first:<\/p>\n\n\n\n

Complementary skills and diverse perspectives<\/h3>\n\n\n\n

The first thing to consider when forming a board is what skills and expertise your company needs to succeed.<\/p>\n\n\n\n

\u201cKeep a constant list of skills the company needs expertise in and look for board members who can fill those gaps and help with the overall strategy,\u201d Fauerbach says. \u201cNot everyone will be the right fit at the right time, so use measured needs to decide on which candidates you select first.\u201d<\/p>\n\n\n\n

You can then use that list of skills to gather candidates who could fill those gaps\u2014but keep in mind that you\u2019ll want to create a list of candidates for each area of expertise.<\/p>\n\n\n\n

\u201cI\u2019ve learned that selecting board members involves looking far beyond impressive resumes. It\u2019s about bringing together people who offer complementary skills\u2014whether deep industry expertise, strategic insight, financial acumen or ethical leadership,\u201d Rishi says.\u00a0<\/p>\n\n\n\n

Meers adds that \u201cwhether your board was hand-picked or handed to you, it is essential that directors bring a diverse range of cross-functional perspectives.\u201d<\/p>\n\n\n\n

Mission alignment<\/h3>\n\n\n\n

If the candidate doesn\u2019t align with your company\u2019s mission and values, you\u2019ll likely have ongoing problems with them down the line. Choosing board members who not only align with your mission but are also passionate about it will help you create an engaged board that\u2019s dedicated to helping your company grow.<\/p>\n\n\n\n

\u201cSelecting a board of directors isn\u2019t just about filling seats,\u201d Rishi says. \u201cIt\u2019s about thoughtfully assembling a team whose diverse perspectives, expertise and values align authentically with your company\u2019s vision and mission.\u201d<\/p>\n\n\n\n

To ensure that your candidate aligns with your company\u2019s mission, ask interview questions like these:<\/p>\n\n\n\n