In this instructive new memo: "New Director Onboarding: 5 Recommendations for Enhancing Your Program," Spencer Stuart shares a robust new director onboarding checklist (standalone attached here for your convenience), which encompasses these five insights and recommendations based on new directors' onboarding experiences and views of best practices:
- Directors value formal onboarding programs that: (i) clearly detail processes and expectations, (ii) include a robust library of pre-reads well in advance of the first board meeting and any meetings with directors or company executives, and (iii) provide channels for follow-up questions. Formalized and structured onboarding programs enable new directors to understand onboarding expectations and proactively identify potential gaps.
- Meetings with the executive team, key senior managers and all other directors should be a core component of all onboarding programs. Formal meetings with directors and informal get-togethers for the full board enable new directors to better understand boardroom dynamics, board culture, and director backgrounds & perspectives.
- More rather than less should be the guiding principle when it comes to onboarding efforts to acquaint new directors with company strategies, financials, organizational structure, business units, key performance indicators, competitors, risks, industry considerations, regulatory environment, investors, Wall Street views, and board history (past agendas, minutes, etc.).
- With significant board work typically delegated to committees, encouraging new directors to attend all committee meetings can be an effective approach for accelerating their understanding of the company & the board.
- Directors value being assigned a more experienced director mentor to provide coaching and feedback, and offer insights on board culture and dynamics.
Notwithstanding best practices and the numerous broadly-applicable components, the firm also acknowledges that there is no one-size-fits-all onboarding program. Rather, programs should be tailored to consider each new director's background, experiences and expected responsibilities (e.g., committee appointments).