Six months after joining my first board, I was elevated to president, handed a US$500,000 contract to sign, and (surprise!) told I needed to run a town-hall-style meeting that evening. Talk about trial by fire.
Serving on a board can be a challenge, but so can a day job or running a business. People traditionally think of board service as an opportunity to give something back to the community, to protect an investment or to gain business clout. But there’s another motivation that should be top of mind for any independent consultant: professional development.
The best boards are run like businesses, and, like any business, they offer an opportunity to gain valuable strategic planning, finance and accounting, management, communication and leadership skills. Boards also challenge us to test our limits and reach beyond our comfort zones.
Chairing my condominium board was a significant challenge, not least because I ended up facing numerous decisions about projects and subjects far from my area of expertise. I’ve talked about tuckpointing, riser replacement and chiller teardowns, and read through mechanical inspection reports. I learned about elevator cables and FCC rules governing satellite dishes. I know what clauses to look for in both maintenance and construction contracts. I’ve even written a memo about what to do if you suspect your mail is laced with anthrax.
Most important, I learned a lot about how to run a business. While my instincts have always been sound, the practical expertise I’ve gained has been invaluable.
- Financial management—I’ve never been a budget guru, but in six years of preparing US$1-million-plus budgets, I learned what to look for and what questions to ask. I found close to US$150,000 in savings my first year by scouring three years of past budgets; the second year, we showed our management company how to add project budgeting so that we could track expenses across line items associated with specific repairs. Pointing out these accomplishments gives me credibility when I’m talking to managers who oversee corporate budgets.
- Personnel—Other than a secretary I shared with three colleagues in a long-ago job, I’ve never supervised employees in my business life—but as a board member, I’ve dealt with my share of personnel issues. I’ve had experience interviewing and hiring both managers and a law firm, and have had the misfortune of dealing with a workplace sexual harassment claim. The latter was very unpleasant, but I have battle-tested crisis management skills as a result.
- Project management—No solo practitioner can thrive without solid project management skills. You need these whether you’re juggling clients, supervising vendors or overseeing a team of subcontractors. As a board member, you have oversight responsibilities that can at times rival those of a corporate manager.
- Teamwork—During a Saturday morning run in the park last fall, I came across some people, half of them blindfolded, who were clearly engaged in a corporate team-building exercise. While I’m no fan of the group hug, teamwork matters. You cannot run a business if you can’t play well with others. Boards offer an excellent way to hone your interpersonal skills without the danger that your approach will rub a client the wrong way.
- Leadership—A well-run board offers an opportunity to see best practices in action, from how to keep a meeting on schedule to handling disgruntled stakeholders. The best entrepreneurs are natural leaders, but leadership is a skill like any other. And it's a quality you need to project to have credibility as a business owner.
I joined my first board primarily because I thought it needed some directors with better common sense and more business savvy, but the professional development benefits have been a consideration ever since. And there’s one more factor: the opportunity to learn from others.
As an independent consultant, I’ve spent most of my career figuring things out for myself. As a board member, I’ve had a chance to sit back and absorb the best others have to offer. For example, I credit my close friend and board colleague Anne Wise for teaching me how to negotiate with a lead bidder and for crafting my favorite interview question: Are you a letter of the law or spirit of the law person? I’m sure you can guess which side I land on.
Partnerships gone bad. Do you have a story to share? Have you ever entered a partnership arrangement, formal or informal, that didn’t work out? If so, I’d like to hear from you for an upcoming column. Please contact me at steigman@erols.com.
