The importance of group-fit in new director selection

Natalie Elms, Gavin Nicholson, Amedeo Pugliese
  • Management Decision, July 2015, Emerald
  • DOI: 10.1108/md-10-2014-0598

What is it about?

Getting the right directors on a board is critical for board effectiveness, while there has been a lot of focus on who sits on a board, less has been paid to why a particular director is selected. This paper aims to bridge this gap and explores how and why outside directors are selected to boards

Why is it important?

We find board selection processes vary considerably between organizations, and this effects the type of candidate appointed. While successful selections should consider both technical and social considerations, many organization's select directors based on only one of these criteria - risking the likelihood of a mis-fit between the position and the appointed director.

Perspectives

Ms Natalie Elms (Author)
Queensland University of Technology

This is a rare insight into what actually occurs inside boardrooms, that both confirms and challenges a number of assumptions made around closed director networks.

The following have contributed to this page: Ms Natalie Elms, Dr Amedeo Pugliese, and Gavin Nicholson