Demystifying Board Commitment: Understanding the Time Investment
How much time does it take to serve on a board? It's a question often pondered by those considering board membership. According to insights gleaned from numerous board members, the average time commitment hovers around 20 hours per month. However, this figure can vary based on factors such as company activity and reporting cycles.
The Meeting Commitment
For public companies, quarterly meetings are mandatory, necessitating committee meetings, preparation sessions, and potentially interviews in the lead-up to board gatherings. Additionally, attendance at annual general meetings is expected, though meeting requirements are generally manageable.
The Time Commitment
The bulk of a director's time is spent in preparation before board meetings. Board documents, which can span hundreds of pages, are typically distributed in advance, requiring diligent review. Best practice dictates setting aside dedicated blocks of time for this purpose, allowing for thorough examination of materials and facilitating communication with fellow directors to address any queries.
For newly appointed board members, the time commitment may be more intensive, often doubling the average as they acclimate to their roles. This period involves familiarizing oneself with company personnel, reviewing materials, and completing necessary paperwork and filings.
The Seasoned Director
As directors become more seasoned, their familiarity with board proceedings increases, and many initial questions are resolved. Nonetheless, maintaining a curious and inquisitive approach remains crucial, as effective directors are those who ask insightful questions and seek clarity on matters presented before them.
A Valuable Investment of Your Time
Serving on a board does require a time investment, particularly in preparation for meetings. However, this commitment is integral to fulfilling the responsibilities of board membership and contributing effectively to the governance and success of the organization.