Interesting perspective I heard recently: board members should all be “too senior” for C-suite roles. This could be because they are CEOs themselves, or are otherwise too qualified to work at the company. If they aren’t overqualified, why are they board members? Just hire them!

I think this is a little oversimplified, particularly for nonprofits, as board members are also selected for mission alignment and trustworthiness. You also don’t want your board to be all “prestige picks”, with no relevant experience.

However, I think there’s something important indicated here: board members should be exceptional performers with deep experience, ideally beyond what is hirable at an organization. Cracked boards are a key mechanism for wisdom and experience to enter an organization.

Companies can also appoint expert advisors, but this can be less effective than board appointments, as:

  • Board members have more “skin in the game” (legally and reputationally) than advisors and will often be more available when needed.
  • Board membership can be more prestigious and attractive than advisorship for highly qualified candidates.
  • Some sensitive info is only shareable with boards. It may not be possible to elicit some wisdom from advisors if they cannot be privy to internal information.