Bringing in boardroom talent
John Elliott • Feb 24, 2023

Do we have the right talent to fulfil our strategy?


It’s a question boards need to ask themselves to ensure that management walks the talk on performance, culture and values.


As businesses face the ongoing challenges brought about by inflation and a looming global recession, the importance of maintaining high performance, a strong culture and talent pipeline has become increasingly important for boards. In January last year, data from a PwC pulse survey found 48% of C-suite executives had identified talent acquisition and retention as the biggest concern facing their organisations. 


Traditionally, the role of the board where talent is concerned was predominantly looking at succession planning, however, today we are seeing a shift where greater focus is applied to strategic talent acquisition to support business change, calling boards to ask questions such as;


  • If we implement transformative business changes, do we have access to the critical skills needed to drive them? 
  • What is the health of the leadership pipeline, not only in terms of succession plans for the leadership team but for other critical roles?


For boards that need new talent, the process of appointing the right person can be challenging. Many boards' difficulties arise from their inability to tap into new talent pools and dedicate sufficient time to narrowing their search down to available candidates. This is often due to a lack of diversity and breadth of experience in their network.


Human capital is incredibly strategic, and attracting, developing, retaining, and deploying the best talent is a real source of competitive advantage. For the board, that involves a delicate balancing act because executing this is the role of management but it is the board’s role to ensure governance. So how can boards attract and hire the best talent and ensure executives are supported in addressing current and future challenges?


Make sure you have a good understanding of the role you're recruiting for 


The recruitment of a new board member is a difficult task.


The fallout of getting it wrong can result in strategic splits, resignations, brand damage, factions, shareholder/stakeholder unrest, etc. However, if the organisation hires wisely, it can reap significant benefits.


Before the process of recruiting a new board member begins, it's essential to have clarity on the needs of the organisation and the capacity in which this new role will help meet those needs and add value. 

One way to understand the skill composition of your board, is to conduct a skills audit. Reviewing board members' skills can help highlight the needs of the company and how to best serve those needs by ensuring that the board is as well-rounded as possible. 


Comparing the skills matrix to the organisation’s strategic plan can assist in identifying where the organisation’s skills gaps are in relation to the organisation's strategic ambitions. This will help refine and focus your candidate selection criteria and subsequent candidate search.


It’s also important to think about how they will work with the business and add value. Specifically, what value do you expect the newly appointed individual to deliver to the board and the organisation? 


Questions to address should include:

  • What do we expect in terms of ROI form this appointment?
  • Are we reliant on this person bringing networks and related business opportunities?
  • How will they contribute to brand recognition through their reputation or contacts?
  • How will they contribute to improving the overall governance?
  • Do we expect them to bring industry experience, and if so, which industry?
  • How will we measure their success?


It’s also important to consider the structures they’ll need to succeed and how their work and expertise are best applied. 


Be clear about how much time your board wants to devote to finding a new member.


The board can play a powerful role in identifying suitable candidates and deciding which profiles are best suited for the role but with busy agendas and limited time to dedicate to the process, great people can easily slip through the cracks.

Statistically, most organisations recruit new Directors by using personal connections. But is it the best way to find the right board director? 



Boards often have limited reach with personal connections and friends or associates, this narrow talent pool inherently increases the risk of appointing individuals who are more inclined to tolerate a ‘group think’ mentality, thereby limiting the board’s effectiveness and representation of the stakeholders.


Investing in an experienced search partner will mitigate the risk of a search process and free up valuable time, enabling the board to focus on its responsibilities. 


Specialist executive search partners have access to broad networks and talent resources that you would ordinarily not have easy access to. In addition to conducting a rigorous selection process, specialist executive search partners can advise on the composition of the selection and interview panels that need to be established, providing guidelines tailored to the nature of the appointment.


Is your Employer's Value Proposition supporting your efforts


Experienced executives and board members understand that any appointment they take comes with some risk. Financial and legal risks aside, reputational damage can be devastating. For most executives and board members, reputation is everything. Taking on the wrong appointment can be detrimental to their board & executive careers. 


Boards seeking to attract new members must proactively alleviate any potential concerns that your organisation is a risk. It’s critical that the business embody and present its benefits; well-managed, supportive and progressive in making informed and robust governance decisions aligned to strong values and principles. 


During the selection and interview process, boards must be able to articulate the value of the role and the organisation and, if appointed, how candidates can have a genuine impact. 


Discuss the importance of diversity

The benefits of diversity are many. Diversity helps create a better working environment and inclusive culture, which in turn helps generate new ideas. A more innovative culture can help your business grow and thrive in an increasingly competitive market. According to McKinsey & Company, an analysis of companies in the S&P 500 to identify top performers in board diversity – defined as those with the highest percentage of women on their boards as of August 2016 – showed that women occupied at least 33% of board seats among the top 50 companies (up to nearly 60% for the highest percentage).

Some companies have already achieved this goal: Amazon's board has six women out of 14 members; Facebook's board has four women out of 11 members; and Alphabet (Google) has three out of eight directors who are female. 

Diversity is not just about gender but also ethnicity, culture, age and experience. 


Fresh ideas and perspectives can help drive performance at all levels.


When boards are searching for candidates, it's important to remember that not all people with different perspectives are created equal. You want people who have a proven track record of success and will be able to make meaningful contributions without disrupting the team or creating barriers.

Be open-minded about the skills required for success in your role; don't assume that someone needs years of experience before they can succeed on your board (or even at all).


With boardroom vacancies on the incraese, you need to make sure that your executive search agency has the right experience, knowledge and resources to deliver quality candidates.


A good executive search agency will have the experience and networks to help you select the best candidate for your boardroom. They'll know how to find professionals with the right skills, who are a cultural fit for your organisation, as well as be able to identify potential candidates that may not be on your radar but could be suitable for other roles in the business.


ELR Executive has over 20 years of experience finding exceptional leadership talent across the FMCG and Food and Beverage Industries. Contact us today.


Executive introducing new leader as part of executive onboarding process

Executive Onboarding in Food & Beverage: The Blueprint for Success

By John Elliott • 09 Apr, 2024
The arrival of a new executive heralds a period of opportunity, transformation, and, inevitably, challenge. The process of integrating this new leader – onboarding – is a critical, often under-emphasised phase that can significantly influence the trajectory of both the individual's and the company's future. So why do so many organisations fail to get executive onboarding right? The High Stakes of Executive Onboarding The adage "well begun is half done" resonates profoundly in executive onboarding. Harvard Business Review reveals a startling statistic: as many as 40-50% of new executives fail within the first 18 months of their appointment. This failure rate is not just a personal setback for the executives; it represents a substantial cost to the company – often up to five times the executive's salary. The reasons for failure? Poor cultural fit, unclear expectations, and inadequate onboarding support top the list. But what makes the consumer goods industry particularly challenging for new executives? It's a dynamic sector where consumer preferences shift rapidly, supply chains are complex, and competition is intense. Here, more than anywhere else, an executive's ability to adapt and lead effectively from the outset is paramount. The Multifaceted Challenges in Onboarding The failure of many organisations in the consumer goods industry to effectively onboard new executives is multifaceted: 1. Tailored Onboarding Versus Standard Processes The provided text emphasises the necessity of a tailored onboarding process for executives, distinct from standard employee onboarding. This is particularly relevant in the consumer goods industry, where executives must navigate unique market dynamics, consumer trends, and complex supply chains in Australia. Tailoring the onboarding process to address these specific industry challenges ensures that executives can hit the ground running with a clear understanding of the landscape they will operate in. 2. The Role of a Dedicated Onboarding Team The concept of a dedicated project team for executive onboarding, as implemented by Palo Alto Networks, could be highly effective in the consumer goods sector. Such a team could focus on providing industry-specific insights, facilitating connections with key stakeholders, and ensuring that new executives understand the nuances of the Australian consumer market. This team would act as a bridge between the executive and the unique aspects of the Australian consumer goods landscape. 3. Engagement During the Notice Period In the consumer goods industry, where market trends and consumer preferences can shift rapidly, keeping executives engaged during their notice period is crucial. This period can be used to familiarise them with current market analyses, consumer behaviour trends, and ongoing projects. This proactive approach ensures that the executive is well-informed and ready to contribute from day one. 4. Cultural Orientation and Familiarity Building a strong cultural connection is vital in any industry but takes on added importance in consumer goods, which often relies on understanding and adapting to cultural nuances to succeed. Regular touchpoints that orient the new executive to the company's culture, values, and consumer-centric approach can help in crafting strategies that resonate with the Australian market. 5. Collaboration Among Various Teams The need for collaboration between HR, Reward, Performance, and Talent teams is pertinent in the consumer goods sector. This collaboration can ensure a unified approach to addressing the specific challenges and opportunities an executive might face in this dynamic industry. For instance, understanding the compensation frameworks and performance indicators specific to different departments within a consumer goods company can aid an executive in making more informed decisions. 6. 'Just-in-Time' Resources The idea of providing ‘just-in-time’ resources is particularly beneficial for executives in the fast-moving consumer goods sector. Given the rapid pace of change in consumer preferences and market trends, having access to real-time data and concise, relevant information can be invaluable. This approach allows executives to stay agile and make decisions based on the latest market insights. 7. Understanding of Performance Cycles In the consumer goods industry, understanding the timing and nuances of performance cycles is critical. This is especially true in a market like Australia, where seasonal trends and events can significantly impact consumer behaviour. The onboarding process should include education on these cycles, preparing executives to plan and execute strategies effectively in sync with these fluctuations. The Role of the Board in Facilitating Successful Onboarding The board of directors plays a pivotal role in the onboarding process. Their actions, or lack thereof, can set the tone for the new executive’s tenure. What should they be doing? Pre-Onboarding Engagement: The process starts before the executive's first day. Boards must ensure clear communication about the company's vision, challenges, and expectations. This early dialogue helps align the executive’s mindset with the company's strategic goals. Structured Onboarding Plan: Developing a comprehensive, customised onboarding plan is crucial. This should cover not just the operational aspects of the role but also the cultural and interpersonal dynamics of the organisation. Mentorship and Networking Support: Assigning a mentor from the board or senior leadership can accelerate the integration process. Additionally, facilitating introductions and networking opportunities within and outside the company is invaluable. Regular Check-Ins and Feedback: Ongoing support doesn’t end after the first week or month. Regular check-ins to provide and receive feedback ensure any issues are addressed promptly. Performance Metrics: Clear, early-established metrics for success help the new executive understand how their performance will be measured. Enhancing Executive Performance through Effective Onboarding The correlation between effective onboarding and enhanced executive performance is well-established. A study by McKinsey found that executives who had a successful onboarding experience were 1.9 times more likely to exceed performance expectations. Furthermore, these executives reported feeling more integrated into the company culture and more effective in their roles earlier than their peers who experienced less structured onboarding. Effective onboarding leads to better decision-making, faster strategy implementation, and a more cohesive leadership team. It builds a foundation of trust and understanding that is crucial in the high-stake, rapidly evolving consumer goods market. Onboarding as a Strategic Imperative Effective executive onboarding goes beyond mere orientation – it is a strategic process that lays the groundwork for long-term success. As we've seen in the consumer goods industry in Australia, a well-planned and executed onboarding process can be the difference between a flourishing leadership tenure and a costly misstep. In an era where the cost of failure is high and the speed of change is relentless, consumer goods companies must view executive onboarding not as a perfunctory checklist but as a fundamental building block of sustainable leadership and organisational success. Remember, your new executive's journey is a reflection of your organisation's commitment to leadership excellence. Invest in their onboarding, and you're investing in the future of your company.
two men are sitting at a table with a laptop and talking to each other .

Talent Acquisition: Internal Strategies vs. Executive Search Partnerships in Australia's Beverage Industry

By John Elliott • 18 Mar, 2024
Explore the pivotal choice between internal talent acquisition and hiring via executive search firms in the food and beverage industry for optimal growth.
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