When you could think like a director on a board, why would you want to think like a CEO?

Much is written about thinking like a CEO or manager, but, I want to challenge you to think like the director on a board.  

There are three duties that each director on a board is tasked with when serving an organization; obedience, care and loyalty. But, beyond this and partly because of this, the board’s creativity, passion and forward thinking are what will make a difference in the strategic direction and mission of an organization.   

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Duties may seem like a restricting word, but, everyone needs to know the parameters of their focus and these are the ones that apply to directors.

Duty of obedience 

Each director is to look to the best interest of the organization and deliberate on decisions before the board with that in mind. First, all applicable laws should be adhered to, ensuring the ongoing viability of the organization.  This would include, compensating employees, paying taxes, filing appropriate documents and ensuring that the resources of the organization being used by members of the board are being used to further the interests of the organization.  Ensure accounting, including audits (if necessary) are completed in time and reports available to the board and to the public, should anyone request them.  And finally, establish proper policies and bylaws to create a smoothly running corporate machine.

Duty of care

Again, looking to the best interest of the organization, a director is tasked with providing the proper mindset for the position.  This would include, using their personal skills to better the organization, reading materials and deciding on matters using a thoughtful and prudent manner.  Attending board meetings and ensuring your voice is heard during such meetings as well as voting on motions.  Understanding the finances of the organization and/or recruiting new members who do understand finance to provide an additional knowledge base to the board and provide for proper succession planning.  Remember, you probably won't be on this board forever, most have terms of service, and you want to provide the organization with qualified, engaged individuals.  

Duty of loyalty

Guarding the organization against fraud, scandal, etc., which is an awesome responsibility.  To that end, conflicts of interest should be made known to the board and the director should refrain from discussion and voting on items that could have bearing on a conflict of interest.  One’s own gain is not to be considered when performing their duty as a director.  

While directors on boards of for profit organizations receive compensation, few do in the not for profit, charitable or service sector, hence, the dedication, diligence and determination to do a job well stem from something other than monetary gain. You bring your experiences, your skills, your passion and you use those things along with that of all other board members to develop strategic plans and guide the affairs of the organization.  

Boards hire a CEO, Manager or Executive Director to fulfill the strategic direction of the organization.  And to do that, they look for people with specific talents and skills sets.  But, these hires do not work from their own agenda, nor do they set the strategic direction of the organization.  What they are responsible for is the staff, to execute the strategic direction and the ability to implement someone else’s vision. 

So, if you really want to see the larger view and think far beyond the direction a CEO has received from the board, think like a director of a board.