Recognizing Board Search as a key discipline
For decades, both private and public companies have naturally engaged in the recruitment and hiring of top executives, managers and management teams. It has been a recognized practice to increasingly use the expertise and tools of professional recruitment companies for these purposes.
The approach to boardroom appointments, however, has often been different. Traditionally, it has been driven by a focus on networks and networking. In many cases, there's also been a perception that contributions in the boardroom were proportional to one's management experience and experience from other boards.
There's nothing inherently wrong with this approach. However, we see a potential risk in this conservatism, a risk that the boardroom becomes overly rigid or resistant to change. Additionally, considering the significant changes in the world around us over the past five years, these potential risks are amplified. What is the most important task of the modern board? We would describe it as follows:
Ensuring effective strategic leadership and oversight of the company involves defining clear, overarching strategic goals. This includes evaluating and appointing the right management, who, along with the board, can optimally handle risks. The purpose is to ensure sustainability and maintain a strong corporate governance structure. This structure should be based on competencies that reflect social development, market conditions and relevant trends in technology usage. This should continually support the company's adaptability, success and value creation.