L. Duksaitė: What is the attraction of the position of an independent member of the Board?
Why do the competitions for independent board members attract so many candidates? There are several reasons. First of all, it is an attractive position on the market, TOP management likes to apply for it and, according to our Master Class Lietuva data, such competitions attract about 20-30 strong candidates per position.
It’s a matter of prestige – when you have a lot of experience, it’s a matter of honour to come to organisations that are important to society and share your knowledge and inspire the necessary change.
Especially as those organisations for which the OECD recommends independent board members are not a sandbox for managerial skills – they are large, usually public sector or listed companies with hundreds of employees and millions of turnover.
Another important advantage is that this position is protected from the operational decisions that managers take in their own work. By becoming an independent board member, they have the opportunity to step back from the day-to-day firefighting and help the organisation to get a bird’s eye view of the big picture and the strategy for several years ahead.
Another aspect is that the picture is not a single one, such as a CFO or development manager. As an independent board member, you also get access to finance, marketing, development, sales, HR – so there are many opportunities to not only help the organisation grow, but also to significantly expand your own competences.
It is true that not just anyone can be an independent member of the Board. You need substantial business experience (typically more than 10 years), as well as experience in a management position in the field of activity of the company looking for a board member – be it infrastructure, customer service, manufacturing or other sectors.
Recently, ISM Rector Dalius Misiunas also shared his thoughts on the role of an independent board member.In addition to the benefits, he also highlighted several risk factors and recommended that four important aspects should be examined before choosing this role: the value created, the time spent, the responsibility assumed and the impact on reputation.
