Career Series Summary: Taking a Seat in the Boardroom with Dr. Sandip Lalli
Dr. Sandip Lalli shared insight from her background as an executive and member of various boards. Her multi-faceted experience within international corporations in agriculture and energy, and expertise in finance, strategy and sustainability equipped her to answer various questions asked by participants related to the qualifications, steps, and challenges of becoming a board member.
What qualifications are required?
Diverse experiences and versatility help individuals become valuable board members. She found that her roles across different supply chains in multiple countries has provided her with a unique lens.
Sandip shares that qualifications differ between public, private, and non-profit organizations, as the function of those boards could be different. For example, the ability to fundraise tends to be crucial to non-profit organizations.
Baseline skills across all boards include: understanding financial statements, understanding the ratios of the business, providing input on investment returns, the ability to exert a governance role over passionate leaders and providing objective feedback, being collegial
The best way for younger people to prepare for board member positions is by not shying away from complex issues!
Becoming a Board Member
It is important to decide where you wish to put your time, and ask yourself what the reason is behind your interest in joining a particular board.
Sandip shares that approximately ⅓ of board members are on the board because their values and passions are aligned. Another ⅓ are there for the status of being a board member and the reputation that follows, and the final ⅓ join for the compensation.
Sandip exemplifies her role as a board member for the Alberta Cancer Foundation - her intention through her role is to ensure the function and funds of the organization, along with contributing towards cancer research
Institute of Corporate Directors Designation (ICD.D) - is it important?
Sandip found her ICD Designation useful in building networks within the executive community; it has given her skills to become a better executive, and remains beneficial through ongoing training. However, it is a costly investment and could be a barrier to entry, in the same way that an MBA used to be in business.
How does compensation work for board members?
Compensation is set by the governance committee and is influenced by the appetite of shareholders to pay those fees
One note made by Sandip is that non-profit board members are often unpaid and are often expected to make monetary contributions to the organization
Non-profit vs. Public Boards
Joining a public board is largely dependent on your career/career advancement, whereas joining a non-profit board is based on your interests
If you’re in non-profit, Sandip encourages becoming a Committee Chair Member. This can help develop your professional skills and sets you apart
DEI and Tokenism on Boards (challenges as a Woman of Colour)
To determine an organization’s sincerity when hiring diverse candidates, pay attention to the material on how Chief Diversity Officers exit companies. Sandip notes that the tenure of a chief diversity officer is around 1 ½ years. This can show signs of insincerity within the organization, and accountability is held by the Board.
Sandip’s lived experience influences her ethics and the votes she makes. There have been circumstances where her vote has been considered as the “voice of all women”.
Sustainability Knowledge on Boards
Sustainability tends to be a second career for many individuals. Because of this, there are more board members with a variety of experiences working to increase sustainability knowledge opposed to designated sustainability individuals. Increasing age diversity on boards can bring in individuals with more sustainability experience, as younger generations have begun to enter sustainability as their first career choice.
Time Commitment
Time commitment is dependent on the organization, but roughly 20-30 hours per quarter.
Public organizations: set by earning releases - about 4 times annually for a strategy session
Non-profit organizations: it takes more time to plan board meetings - about 3 to 4 times annually based on financial statements
Committee chairs: an additional 8-10 hours of contribution to make strategy sessions
Mentorship
Sandip gives credit to her executive coach for her board career. She encouraged Sandip to join boards, as it was a great way to grow and build upon her complex career experience.
