The day a person joins the leadership team on a board of directors is the day they become liable for the decisions of the board. Preparing new board members for this responsibility, ensuring they are confident, enthusiastic and ready for the challenges that lay beyond the first board meeting, is the function of a well-designed board induction program.
“The Board Induction is a crucial governance process which routinely suffers from a breakdown in implementation.”
If you have a formal Board induction program, you understand how challenging it can be to get everyone on the same page and working together as a team. New Directors need a suitable amount of training before their first Board meeting as well as ongoing support during their first twelve months. In a recent industry survey we conducted we were swamped with stories of Directors who felt completely mystified by their inductions. Take this response:
"I had a couple of hours on a video-conference link which was very helpful for that role, but I was still totally unprepared for directors' responsibilities."
Traditional Board induction programs can also leave new Directors disengaged (even before they begin). This can be challenging especially if you want them to reach their potential quickly but don’t have the time to coach them personally through this transition.
"I had no idea what to expect and felt intimidated by a chairman who controlled meetings as well as access to information."
Imagine if...
All the Directors who undertook your Board induction were confident and prepared at their first meeting.
Each of your new Directors was asking the right questions, reading and participating in all Board papers and discussions.
All new Directors were enthusiastic about their tenure, and brought fresh insights to the table, even if they are volunteers with little to no formal experience.
There are four key elements that our research and many decades experience in developing Board Induction programs highlight. These Induction Program elements are:
It is mandatory.
The process and outcomes are formally monitored by the Governance committee with support from the Company Secretary.
Mentors are assigned to each new Director, with a changeover of mentors after 6 months.
It is at least 12 months in duration.
The following are the crucial components that high performing Directors have told us make a strategically useful Board Induction program. Each organization can be quite different in its structure and roles, so please be aware that any material mentioned in this article needs to be viewed through the filter of how your organization is structured.
Orientation
Meeting with Board Chair (Governance processes, meeting structures, expectations, Induction process, Board manual, reviewing Board papers)
Meeting with CEO, Executive and key staff (Overview of operation, key policies, tour, decision making processes of that department, how business cases are developed and presented to Board)
Meeting with Chair of Board Committee (Terms of reference, overview and workplan, current issues)
Induction Manual sections:
Vision, Strategic Priorities, History and Philosophy
Constitution
Board policies
Directors’ Code of Conduct
Contact details, CVs and skills register
Organizational chart
Strategic Plan
Risk Management Plan
Program descriptions
Relevant press clippings
Annual report
Relevant brochures of programs
Financial documents
Annual Board Workplan
Board training program
Board minutes
Board resolutions
Board evaluation process
Insurance policies
List of key legislation
Decision making skills and strategic thinking protocols
Board mentoring protocols
Induction key dates
Glossary of terms
Please, comment on your experiences, write in to me, tell me what has worked, what hasn’t worked, what you have done to make your Board Induction process even more impactful. I may even write a follow up article outlining what you have told me, so others may benefit.