Moving Board Education—Not Expert Directors—to the Front Burner

C-suite leaders believe their boards have a good understanding of corporate strategy, business risks and opportunities, and the competitive landscape—according to our survey of 600 C-suite executives. However, leaders surveyed give lower marks for specific areas of expertise. ESG is a case in point: 65 percent say the board understands ESG strategy—but only 26 percent believe the board has expertise in this area. How can management bridge this gap?

Insights for What’s Ahead

Education is the answer, not specialist directors. Indeed, having specialist directors can be counterproductive if the rest of the board (or management) relies on them too much, or if they add little to general board discussions and overall strategy. Rather, boards may be better served by increasing board fluency in areas where there may be specific gaps.

Management should take the lead in ensuring the board is fluent in specific areas (such as ESG), especially given the limited time available at board meetings. Management can do this by scheduling meetings with key executives for deep dives into those areas that matter most to the company; supporting board attendance at external education programs and events; and engaging outside providers to deliver trusted and objective information, benchmarking, and advice.

The Conference Board has launched its Corporate Director Council program, offering an entirely new level of experience for directors in leadership positions on US public company boards. By joining a Corporate Director Council, Members will gain practical insights that can enhance their board’s effectiveness as a strategic partner with management. To learn more about this program, please contact Zachery Katich.

Additionally, Members of our ESG Center are entitled to a complimentary expert briefing tailored specifically for your board, C-suite, or any group of employees on a broad range of ESG topics, including board effectiveness. If you are interested in taking advantage of this exclusive benefit, please get in touch with Jonathan Yankelewitz for more information.