Bad Board Member Searches and How to Avoid Them

3 Min Read

Competition among PE firms for great board members continues to increase. Many firms turn to board member recruitment firms to streamline the process and ensure they find the right fit. It’s essential to work closely with a firm that offers board of directors recruitment for private equity to avoid these common mistakes:

TLDR

• 5 common mistakes can derail your search for the best board members
• Follow best practices: trust but verify, conduct background checks, probe decision-making skills, use rubrics, etc.
• Need more help? Try resources like “A PRACTICAL GUIDE TO BOARD MEMBER SEARCHES” or “45-SECOND CHECKLIST FOR BOARD MEMBER SEARCHES”

Don’t get excited about a “big fish.”

Board member searches often take place under deadline or deal pressures. Discovering a “dream” candidate early in the process can lead you to short-circuit best practices. In the heat of the moment, you may be tempted to forgo evaluating other candidates or bypass critical assessments or background checks. The result can be a quick decision that you’ll spend a long time regretting. Work closely with your board of directors’ recruitment firm to quickly source the top-quality candidates. 

Don’t trust answers you can’t verify.

Don’t just take a candidate’s career numbers at face value. If you can’t verify revenue, sales growth, market share, or turnover figures through independent sources, industry reports, or other senior executives, your credibility might take a hit. Your board of directors’ recruitment team should conduct deep-dive verifications and cross-check the candidate’s data.p lamenting your credulity.

Standardize your evaluation process.

It’s not uncommon for multiple people at a PE firm and portfolio company to interview numerous board candidates over an extended period. But subjective judgments can shift, and memories fade. Implement a rubric that clearly outlines “must-have” capabilities, expertise, talents, and relationships, along with a quantitative scoring system. This is essential for avoiding the pitfalls of primacy and recency effects, as well as significant disagreements about fundamental qualifications.

Probe their decision-making.

This mistake has two aspects. First, avoid asking generic questions about past decisions. Instead, probe their decision-making with specific, focused questions. For example: “Tell me about a time you had to bring a tough topic to the board. How did you prepare? What did you say in your presentation to the board? What was your follow-up process?” Second, don’t shy away from “what if” questions to understand their decision-making process when faced with new, unfamiliar challenges. For example: “How would you go about announcing the need to cut staff? How would you go about deciding who to lay off? What would be your process for communicating cuts to the company? What pitfalls might arise?”

To leverage your board of directors recruitment firm, work with them to develop these targeted, probing questions. Their expertise can help craft scenarios that truly test a candidate’s decision-making under pressure and reveal how they’d navigate complex situations within your specific industry.

Don’t turn red flags pink.

If a candidate seems to be pushing you to rush your decision, it’s definitely time to take a step back. That type of warning sign should trigger an immediate need to dig a little deeper. One powerful technique is to reach beyond their list of references and talk confidentially with people who know the candidate — co-workers, supervisors, direct reports, partners, etc. – and ask one simple question: “Would you enthusiastically recommend  ‘Candidate X’ for a board member position?” You’ll find their answers quite revealing.

Your board of directors’ recruitment firm can be instrumental here. They can help you discreetly reach out to a broader network of contacts who have worked with the candidate, ensuring you get an unbiased and comprehensive understanding of their suitability for a board role.

With record-breaking deal-making, many board of directors recruitment firms have reported a sharp rise in demand, making early preparation even more essential.

Avoid Costly Board Recruitment Mistakes

Want to avoid some of these critical mistakes in your next board member search? Working with board member search firms helps private equity teams with structured vetting processes, ensuring candidates are thoroughly assessed through background checks, industry references, and objective evaluation criteria. 

By leveraging their expertise, PE firms can prevent rushed decisions and identify the perfect-fit board members. 

Secure top-tier board talent with expert guidance. Partner with leading board of directors recruitment firms like Apex Leaders to find the right fit for your PE firm. Contact us today to learn more about our services.