As companies grow and evolve, the organization must ensure that the skill sets of its management team also keep pace throughout various growth stages and environmental shifts. The same is true for the board. How does an early-stage board member continue to grow and contribute as the company doubles or triples its valuation? While there is no single “best practice,” boards that are constantly evaluating themselves tend to be on the right path.
Certainly the goal is to help [board members] rise and move along with the company…What we implemented a few years ago is peer-to-peer reviews. It’s not an easy process, and that’s the reason many boards don’t like to do it. But it is a necessary process as the business landscape continues to get more and more competitive…You need good minds [in the boardroom] representing the shareholders to stay on top of management.
Bruce Bohuny, Board Member, Lakeland Bancorp
Bohuny describes the growth that took place, as his board evolved its approach to CEO talent, board operations, and committee structures. Speaking generally, Bohuny also discusses the process necessary for any board to transition alongside an emerging growth company—and why the peer-to-peer evaluation process can be especially tricky for boards to implement.
Host TK Kerstetter also asks Bohuny to consider future trends in board tenure: As more young directors join boards, what are their expectations for length of service or term limits?