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For Maggie Wilderotter, serving effectively on a board “means eating your way in corporate America,” she says. “In the first year of a new board, I make sure to have a private meal with all the other directors. And the CEO.”
It's a lot of work, but that kind of intrusiveness is very important, she says. “It’s important to get to know people as they are,” Wilderotter says. “Sharing a meal is the best way to do it. It's not transactional. It's equality. You're equals at that table, you're not in any role. People relax. What do I do?” I love finding out what excites people.”
Wilderotter applies the same type of information gathering and discussion initiation to board meetings themselves. “In the Dilbert cartoons, board members say, 'That seems ridiculous,' but in a real conversation they say, 'Why do we need to go in that direction?'” All opinions I would like to put them on the table and organize them together. And I'm always aware of who isn't saying anything. As Chairman of the Board at DocuSign, I'm a facilitator, not a dictator. ”
When it comes to CEOs, boards “have to be very clear about what is expected of them,” and at the same time, directors should tell CEOs “rather than whitewashing what’s going on in the company.” , she says, should be expected to “provide the truth to the board.”
As Chairman, Mr. Wilderotter regularly obtains consensus among the independent directors on what issues he believes are important to the company and what strategic axes will be considered, and reports to management. To do. CEOs “don't like surprises,” she says, so a competent board lets them know where they stand and what needs to change.
But that's not always the answer. “Some CEOs, especially founders, are creators. They don't like running large businesses,” she says. “As a board member, you need to keep an eye on how long the CEO will remain in the seat and actively engage in dialogue with them about when is the right time to transition,” she said.
An experienced antenna will help. Mr. Wilderotter enjoys his seat at Costco. That's because Costco is ruthlessly efficient and uses “simplicity as a competitive advantage.” So she's been on the retailer's board since 2015, a typical tenure for her. “At this point, it becomes difficult for her to be a truly 'independent' board member,” she says. “However, I have no intention of leaving the company in a state of limbo. I will stay here until things are fixed.”
Expectations on corporate boards are rising, she says. “Boards used to be like the Wizard of Oz, behind the curtain, not in the public eye, turning all the knobs,” Wilderotter says. “But in the last five years, there has been a lot more transparency. [shareholder] It's about being proactive about how boards operate and increasing accountability to stakeholders for how boards actually operate. ”
Wilderotter stays on top by attending and speaking at several Board Refreshment Academies each year. “You get a different perspective from board members than you get from long-serving directors,” she says.
Wilderotter also contributes to the future of board members by training corporate director candidates to “take the mystery out of board service,” she said. She runs boot camps for senior leadership women and minority men, helping them land their first executive positions.
“If you're not familiar with board service, it's hard to get on board, and if you don't get on board, you don't know what to expect in the boardroom. By removing mystery, new board members are more likely to We can understand the situation sooner and get involved sooner.”
