Solid due diligence when interviewing for a Board role is essential. Rosalie Harrison explains why and how.
If you truly understand the role of a Board of Directors, you also understand that such a position should not be accepted lightly. The potential risks of joining a public company Board of Directors have increased over the past decade. Increased scrutiny from global regulatory authorities and activist investors are just two of the most recent risk trends. In this environment, it would be irresponsible for a candidate to accept a Board position without conducting an appropriate amount of due diligence.
Due diligence is the process by which you will gather vital business information about the company you intend to join. In addition, we also recommend that you engage in a reflective due diligence process about your own capabilities and commitment. Such a process will enable you to determine whether or not your appointment will add value to the Board; assess the degree of risk entailed in the appointment; and, identify any potential conflicts of interest. In addition, the Board’s response alone to your due diligence efforts will provide you with much insightful information. If you are considering a respectable and well-run Board, a thorough due diligence process will make you a more valuable and attractive candidate.
Due Diligence Questions to Ask About the Company and Its Board
Due Diligence Questions to Ask About Yourself
Once you have gathered all of the information you can about the Company and its Board of Directors, including their needs, goals and values, it is now important for you to engage in a due diligence self- assessment. Ask yourself questions to determine if you are a suitable candidate. Answer honestly. An honest self-assessment is, in fact, one of the first ways in which you can demonstrate that you truly understand the role you are considering. Below is a non-exhaustive list of questions to ask. There may be others that are relevant to your particular circumstance.
Once you have the answers to these questions, you are ready to make a truly informed decision.