The Problem: Everyone’s Looking for Directors — But Few Are Looking Strategically
With an increased demand for fiduciary and advisory board members across Canada and beyond, `members of CEO forums, private equity networks, and other such groups are increasingly placing directors through personal referrals and executive circles. While this approach may feel efficient, and undoubtedly these pools contain many talented and experienced individuals, these networks often prioritize familiarity over fitness. They may tap into impressive leaders, yet few stop to ask the most important question: “What skills, perspectives, and governance capabilities does this board truly need for the future?”
At Watson Board Advisors, we believe the boardroom is too important to be left to chance. Board composition should be intentional, balancing the needs of the company, sound governance on behalf of investors and owners, and the effectiveness of the board as a high functioning team.
The future of board recruitment isn’t about speed or networks. It’s about creating a high impact, engaged, and results-oriented board that creates value.
Familiarity Has Benefits, But Also Significant Risks
When CEOs or directors recruit new directors from their personal circles, they may move fast, but not always forward.
Familiar circles often mean familiar thinking and lack of challenge. People who know each other well and are part of the same group often think alike, which counters a typical board goal of assembling a team with strong diversity of thought. We have also seen situations where board members chosen by another director or the CEO from the same circle are reluctant to challenge the thinking of those who recruited them. Again, this runs contrary to the attributes of a high performing board.
Why It Matters Now
Companies today face extraordinary complexity – digital transformation and disruption, workforce evolution, geopolitical upheaval, economic uncertainty, climate change, supply chain fragility – and investors, owners and management teams expect their boards to be competent and capable, high functioning teams to govern, lead and help their organizations navigate the future. Populating the board through a call for interest within business circles, when the stakes are high, is a risky approach.
PwC’s 2025 survey of more than 600 directors supports the view that more attention is required for building high performing boards.
“Frustration in the boardroom is mounting, and directors are increasingly acknowledging it. This year’s survey reveals discontent with peer performance is at a record high: 55% of public company directors surveyed believe that at least one of their board colleagues should be replaced, up six percentage points from last year. This suggests that directors are becoming more candid about underperformance among their peers. It may also reflect a greater understanding that directors are looking for more from each other in today’s dynamic business environment. Indeed, the most common concern fueling this point of view is a lack of meaningful contribution to board discussions.”
PwC 2025 Annual Corporate Directors Survey
Our Approach: Board Recruitment Viewed Through Four Lenses
Effective boards aren’t built by accident; they’re built by design. That means starting with what the company needs to thrive – not who you know – to find the right individual for the job.
When helping our clients design an initial board or fill a vacant position, we use the following lenses to guide our approach:
- Purpose and Strategy: Board composition is grounded in the company’s needs and the board’s responsibilities. We start by making sure there is absolute clarity on the company’s purpose, strategic objectives and risk profile, and how the board is expected to add value. Every new appointment should strengthen the board’s capacity to add value to management and provide strong governance leadership.
- Director Competencies: In addition to specific skills and experience, we know from our director competency framework that there are certain personal attributes and behaviours that differentiate great directors from good directors. We systematically screen director candidates for those differentiating competencies that are essential to board effectiveness . Not every marquee name or great executive is a great director.
- Diversity of Thought: The research is clear that having diversity of thought on a board of directors isn’t just a “nice-to-have” for optics; it’s a strategic advantage that improves governance, risk management, innovation, and long-term performance. We help boards carefully craft the diversity profile that is relevant to them.
- Future Focused: Boards that stay effective evolve deliberately. Director appointments should never be a one-off. They should be part of a succession plan that considers shifts in the company’s operating environment and the board’s leadership requirements. We ensure that board/committee leadership positions are considered at the time of recruitment. We help companies anticipate renewal, plan leadership transitions, and align composition with the company’s emerging risks, opportunities, and strategy.
These four lenses ensure the board’s composition is fit for purpose, future focused and aligned with the company’s strategy. They turn recruitment from a search for names into an act of board design.
Let’s Redefine How Boards Are Built
If your company is facing a pivotal moment — growth, succession, transformation, or increased scrutiny — now is the time to rethink how your board is composed.
Watson Board Advisors can help you:
- Assess your current board’s effectiveness and future readiness
- Define the competencies your board needs
- Conduct independent director searches
- Strengthen your approach to board succession planning for the long term
Let’s start a conversation about how your board can be designed for the future.
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