Guides
Boards need younger people, here’s why
While board positions have traditionally been associated with older, more experienced individuals, there is growing recognition of the value of diverse perspectives, including those of younger people.
Younger directors can bring fresh ideas, innovative thinking, and a strong understanding of emerging trends and technologies.
They can provide insights into the preferences and needs of younger demographics and contribute to the organisation’s strategic decision-making process.
However, it’s important to note that board positions typically require a certain level of experience, knowledge, and expertise.
Younger individuals seeking board roles should possess relevant qualifications, skills, and experience in finance, governance, strategy, or industry-specific expertise.
They may need to demonstrate their competence, leadership abilities, and commitment to the organisation.
There are various avenues through which younger people can pursue board opportunities, such as:
Nonprofit and community organisations
Young professionals can start by serving on the boards of local nonprofit organisations or community groups. These experiences can provide valuable governance and leadership training.
Professional networks and associations
Engaging in professional networks and industry associations can offer opportunities to connect with experienced professionals who can provide mentorship and guidance for board positions.
Read more: Become a member of the Corporate Governance Institute
Board training programs
Board director training programs equip younger individuals with the necessary knowledge and skills to serve on boards effectively.
Advisory roles
Younger individuals can initially seek advisory roles or positions on advisory boards to gain experience and establish their credibility before pursuing full board positions.
Board diversity initiatives
Many organisations and institutions actively promote board diversity and inclusion, including age diversity. Younger people can explore opportunities that focus on creating diverse boards and leverage those initiatives.
Younger people are increasingly being considered for board roles
It’s worth noting that the selection process for board positions may still involve challenges related to age biases and perceptions.
However, as organisations recognise the importance of diverse perspectives and the benefits of generational diversity, younger people are increasingly being considered for board roles.
What is the primary role of the board?
The main functions of a board of directors vary depending on the organisation and its legal structure.
However, some standard roles and responsibilities typically associated with a board of directors include:
Governance and oversight
The board sets the organisation’s mission, vision, and strategic direction. It establishes policies, procedures, and governance frameworks to guide the organisation’s activities. The board also ensures compliance with relevant laws and regulations.
Appointment and evaluation of senior management
The board hires, evaluates, and, if necessary, terminates the CEO or other top executives. It ensures that competent leadership is in place to manage the organisation effectively.
Financial oversight
The board monitors the organisation’s financial performance, reviews financial statements, and approves budgets. It ensures that appropriate financial controls are in place and that the organisation operates within its means.
Risk management
The board identifies and assesses the organisation’s risks and implements measures to mitigate them. It establishes risk management frameworks and monitors the effectiveness of risk management processes.
Stakeholder relations
The board represents stakeholders’ interests, such as shareholders, employees, customers, and the community. It ensures that the organisation operates responsibly and ethically and considers the impact of its decisions on various stakeholders.
Strategic planning
The board participates in strategic planning, evaluating and approving significant initiatives, investments, and partnerships. It provides guidance and input on long-term goals and objectives.
Board development
The board is responsible for its composition and effectiveness. It identifies the skills and expertise needed among its members, recruits new directors, and provides ongoing training and development opportunities.
Legal and fiduciary duties
Board members have a fiduciary duty to act in the organisation’s best interests. They must exercise due care, loyalty, and good faith in decision-making. They are also responsible for ensuring compliance with legal and regulatory requirements.
It’s important to note that a board of directors’ specific functions and responsibilities can vary depending on factors such as the organisation’s size, industry, and legal requirements.
Additionally, boards may establish committees (e.g., audit committee, compensation committee) to focus on specific areas of oversight and provide more in-depth analysis and recommendations to the entire board.
Board member training for the next generation of directors
So, what are you waiting for? Discover more about the Professional Diploma in Corporate Governance and take your career to the next level.
Download the course brochure below.