This failure is costing companies dearly in terms of lost opportunities and inadequate access to important expertise.

According to Michael C. Nieset, managing director of Christian & Timbers, "Without a world-class Board of Directors, companies lack a critical component for success and have a much more difficult time meeting goals. The quality of Board members, and the expertise they bring to a company, is a consistent predictor of success for corporations in every industry."

While companies have long turned to search firms to identify and recruit the best candidates for CEO and other top management positions, few have applied the same methodology to identify and recruit members to the Board of Directors, Nieset explains. "For generations, CEOs have recruited people to serve as outside directors based on who they knew, and many have set out to find directors who made them feel comfortable. They weren't necessarily looking for a rubber-stamp board, but at the same time, they weren't looking far a field in choosing people to serve on the Board." This methodology, according to Nieset, probably never served companies well in the past, and it certainly doesn't work in today's more fast-paced and competitive business environment.

"CEOs need to identify and reach out to executives of companies in similar industries, who have taken their businesses through similar challenges. Business models evolve so quickly in today's marketplace, that it is critically important companies include someone with a 'been-there-done-that' expertise on their Board," states Nieset. It's a methodical and an intellectual exercise. Someone with true experience can add tremendous value and perspective. "The last type of person that should be serving on the Board is another lawyer or accountant. I always advise my clients they should not put anyone on the Board whom they can hire as a consultant. More often than not, it's a waste of a seat."

Putting a world-class board in place, Nieset asserts, is a prerequisite to attracting the best CEO and other executive candidates. "The talent pool is very discriminating and they understand the important role a board plays in guiding management's work. A world-class board in today's marketplace is required to build a world-class management team."

Christian & Timbers, the premier firm for CEO assignments, is currently ranked among the top 10 retained executive search firms in the United States and is the fastest growing company in the industry. For additional information on Christian & Timbers, visit www.ctnet.com.

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