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From management to the board, how to transition effectively
From management to the board, how to transition effectively between two roles that may look similar from the outside but are quite distinct.
If you’re a manager or executive and just won your first board role, congratulations. It’s a huge achievement.
But we warned: you can’t just “sail in” from one role to the other. They might seem similar from the outside, but transitioning from management or executive to a board of directors is a significant shift in responsibilities.
If you understand and are trained for this shift, you’re far better prepared to adjust to life in the boardroom.
How to transition from management to the board
Let’s compare and contrast multiple areas of running a company. This will give you an idea of what boardroom responsibilities will look like compared to management or executive:
The main responsibilities
Management/executive: You are focused on the day-to-day running of a company. You have a heavy presence in the office or on video calls, and ensure that your corporate strategy is being rolled out effectively across all teams under your remit.
Board of directors: You are not focused on the day-to-day and have limited presence in the lives and minds of most employees. Your role is more top-down. You should be able to see a company’s overall progress and direction at all times. You need to ensure effective long-term strategy and growth. Any logistics or internal challenges? Leave them to the management team.
What does that mean? You need to broaden your outlook. Don’t focus on the company’s inner workings as much as the overall strategy and how it fits in the industry. Your job is to think big now.
Decision-making
Management/executive: You’ll likely make most decisions fast, prompted by urgency and the “hands-on” need to keep things moving. Every day is a multitude of decisions, and you must be on your toes to match the volume.
Board of directors: Decisions are broader and affect longer-term progress. As a result, you might take more time to make them. You need to deliberate with your colleagues and consider all the information before arriving at a conclusion.
What this means: The scary part is that board decisions often carry more weight since they mean dealing with the longer term. The exciting part is you get to use your own experience and strategic thinking to help drive an organisation towards success.
Accountability
Management/executive: You’re usually accountable to the CEO. If you are the CEO, you’re responsible to the board.
Board of directors: You’re accountable to the shareholders. Every decision you make, and opinion you hold in the boardroom should be in the best interests of the shareholders. This is one of the most basic principles of governance.
What this means: You need to switch mindsets here. Moving into a boardroom means moving away from the traditional work mindset of reporting to just one boss. On a board, things are not as clear cut.
Who you work with
Management/executive: You’ll see fellow employees who report to you most of all. You may see the board, and even customers, on occasion.
Board of directors: You won’t be engaged with the organisation daily; when you are, you’ll usually only see and work with other board members. If employees join these meetings, they will usually only be the CEO or other senior executives.
Outside of this, you will work with shareholders and external advisors, provide them with updates and take their questions.
What this means: In many ways, you are stepping out of your management role and into a position that demands a great deal of diplomacy and strategy. Work on these skills if you want to succeed.
Skill set
Management/executive: Naturally, your ability to think quickly, manage others, problem-solve and take initiative will be your most in-demand management skills.
Board of directors: You need a broad understanding of your own business and the wider industry. You need a willingness to explore new ideas and an ability to spot risks and opportunities that could seriously affect your business.
What this means: Skills needed for the boardroom are very subjective. The above is only a generalisation. Accurate preparation for a board role comes from dedicated training, especially as directors face more direct responsibility.
Remember:
Above is a list of pointers if you’re transitioning from senior management to non-executive board roles.
It is also possible to be an executive director; this carries additional layers of complexity, which involve balancing both sides of the business.
You can read more about it here.