Suit the board member to the need
When Henry Ford decided to create a car for the masses the majority of people were being transported by horses, trains, bicycles and shanks pony. Had the Haynes Royal Commission had its way Ford would have chosen some of his board members from here (*). Although I expect that trainers of horses are very knowledgeable in risks and rewards of horses being attached to carriages I am not convinced that this knowledge would have been much use to Ford.
Over the last few decades diversity in boards as elsewhere has been trumpeted. It is needed because we are human and thus biased and blinkered. Diversity aims to counteract this human condition. In a perfect group each bias and blind spot will be seen by someone and outed for debate.
No doubt having board members with deep sector knowledge seems sound, that is until you consider its execution.
Only so many people can work in a team. Too many and nothing gets done. Each board position is thus exquisitely important and shouldn’t be wasted – don’t employ a horse trainer when a 28 year old techwiz is needed.
I’m not saying don’t look for sector knowledge rather choose your director to suit the company’s situation and need.
(*) Recommendation of Royal Commission as stated in AICD Director Update, Perth 2nd October 2018.
Some earlier posts:
–> Letting go negative thoughts
–> Its time to rally around the underdog
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