ANALYSISTHE PERFECT BOARD

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The ultimateretail boardWhat mix of personalities and skills makeup the perfect board, asks Charlotte Hardie

ver sat in a board meetingand been inspired by theperformance of every singleperson sitting around the

I table? If you have thenI you're lucky, because in

reality, the perfect board probablydoesn't exist. As trading pressures con-tinue to hound retail boards up anddown the country, every business willbe constantly scrutinising the perform-ance of their top team.

As Moira Benigson, managing part-ner of executive search firm MBSGroup, says: "In tough trading you havean opportunity to make some interest-ing changes. It's a good time to reassess."

That doesn't necessarily meanwielding the axe, but identifying roomfor improvement is no bad thing. RetailWeek has devised a summary of theideal skillsets for each board member.While it depends to an extent on thenature of the retailer, it should helpbuild a collective picture of whatboardroom utopia might look like.

Is it difficult to bring about a trulycohesive board? In many cases, surpris-ingly so. As Steve Baggi, co-founder ofGreen Park Interim and ExecutiveResourcing, says: "A lot of retail boardshave relatively low turnover and theycan become stale."

Challenging questions need to beasked. Does your board have a balanceof opinion? Benigson stresses the risksin having a board crammed full with'yes' people. "You want someone whowill think differently to you."

Baggi agrees that diversity of thoughtis essential: "The problem arises inensuring there are different ways ofthinking. Is there a blend of both skillssets and thought processes? What youwant is healthy debate." He points toNorthern Rock - did everyone at thatbank simply go along with decisionssimply because there was no one tochallenge the accepted way of thinking?

Benigson says a retail board risksbecoming something of an old boys'club. To that end, retailers need to con-sider whether they have a wide enough

spectrum of people on their board."The internet is a major part of what wedo. It belongs to young people. Might itbe interesting to have a young personon the board?" she asks. And despitethe fact women make most purchasingdecisions, female board representationis still embarrasingly low.

The process of building a retail boardcan be too formulaic - recruitmentfocused on the same old suspects.Baggi says: "It comes back to the age-old issue of retail talent. If you haven'tworked in retail it's hard to get into it."

The very task of finding the right peo-ple with the right skillsets can be chal-lenging enough, which is why thinkingmore creatively about who you bring tothe board could work in a retailer'sfavour. Sally Elliot, retail partner atheadhunter Korn Ferry WhiteheadMann, says: "One problem is the size ofthe talent pool. A lot of board directorsare process-driven. They haven't reallyunderstood how what they do relates tobusiness strategy."

A report presented by Korn FerryWhitehead Mann at the World RetailCongress last year - 'What's in store?The Forecast for Global Retail' - wasbased on the views of chief executivesand board members in all key retailmarkets worldwide. One pressing con-cern that emerged was the need forinnovation. "Chief executives are tell-ing us the skillset that will make thebiggest difference to their organisationright now is the ability to innovate,"says Elliot. And yet their researchshowed that innovation is one of themost difficult competencies to developin executives and also one of the leastprevalent in retail board directors.

During the downturn most retailboards were preoccupied with opera-tional skills and cost-cutting. Now it'sabout generating growth, internationalexpansion and gaining market sharefrom competitors. Trading will remaintough for some time, and a retail boardthat simply safeguards what it alreadyhas instead of challenging and innovat-ing may well run into trouble.

"A LOT OFRETAIL BOARDSHAVERELATIVELYLOW TURNOVERAND THEY CANBECOMESTALE"Steve Baggi, Green ParkInterim and ExecutiveResourcing

THE CHAIRMAN"Needs to be an ambassador.The days where they couldhide in the City are gone,"

Steve Baggi, Green Park Interim andExecutive Resourcing.Some key responsibilities The personcharged with leading the board, overseeingthe development of strategy, and acting asthe chief executive's sounding board.Some leadership attributes As a public faceof the company, the chairman should oozecharisma and gravitas - a strong characterwith top-notch communication and listeningskills who can rally both the retailer'sworkforce and shareholders' confidence.What should keep them awake at night?The strength of their succession planning,

32 Retail Week January 28,2011 www.retail-week.com

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ANALYSISTHE PERFECT BOARD

the effectiveness of the board, and keeping

the all-important shareholders happy.

THE CHIEFEXECUTIVE"The best can pull the board

together and create a culture

that makes the team work together for

the broader interests of the business.

Easy to say, difficult to do," Sally Elliot, Korn

Ferry Whitehead Mann.

Some key responsibilities An extensive remit

that includes creating a vision forthe brand,

ensuring strategy is translated into

meaningful actions for the whole business,

and creating a positive culture.

Some leadership attributes Atop chief

executive needs to cut to the chase. They will

be exceptionally sharp, be a great

communicator, have first-class business

acumen and inspire others to achieve.

What should keep them awake at night?

Delivering results as well as aligning the

whole business to their brand vision. They

need an unhealthy obsession with

competitor activity - and external factors

that could impact on their business.

THE FINANCEDIRECTOR"They must be supportive but

strong - a great number two

and happy to hold back," Moira Benigson,

MBS Group.

Some key responsibilities A strategic and

commercial business partnerto the chief

"A LOT OFBOARDDIRECTORSARE PROCESS-DRIVEN. THEYHAVEN'TREALLYUNDERSTOODHOW WHATTHEY DORELATES TOBUSINESSSTRATEGY"Sally Elliot, Korn FerryWhitehead Mann

executive. Aside from the number crunching

-financial planning includes budgeting,

reporting and ensuring necessary capital -

they must manage investor relations superbly.

Some leadership attributes The best have an

umbrella view of the business, can make

complex decisions quickly, can simplify the

complex in a heartbeat and have an

unswerving focus on the bottom line.

What should keep them awake at night?

Myriad factors that include the challenge of

balancing the chief executive's ambitious

plans with financial prudence, as well as

capital-raising conundrums.

THE HR DIRECTOR"A really good HR director

understands strategy

and looks at how to get

people to implement that strategy,"

Steve Baggi, Green Park Interim and

Executive Resourcing

Some key responsibilities Creating the people

strategy, acting as coach and counsel for

the board, and overseeing legal processes

and compliance.

Some leadership attributes Too often

dismissed as mere policy people, a top HR

director is invaluable. The best know the

business inside out and know exactly how to

align the workforce with the chief executive's

strategy. They are problem solvers, change

managers and brilliant at inspiring others.

They are the chief executive's confidante - the

person the chief executive can talk to about

the top team's performance.

What should keep them awake at night?

Developing and retaining talent and ensuring

the top team is cohesive. Union activity and

employment law also provide much food

for thought.

THE PROPERTYDIRECTOR"A great property director will

always be one step ahead,

seeking opportunities to benefit from or

mitigate the impact of the economic

environment on the business," Sally

Moulsdale, Directorbank.

Some key responsibilities Negotiating leases,

leading acquisitions and disposals,

overseeing fit-outs, refurbishments and

facilities management and managing

landlord relationships.

Some leadership attributes Far more than just

bricks-and-mortar people, the best have a

strong financial head and first-class

negotiation and people skills-vital in

managing third-party relationships.

What should keep them awake at night?

Ensuring a strong store portfolio in the best

location forthe right price. Managing

international expansion challenges, store

closures, store openings and the ubiquitous

problem of tackling rents pervade their

every thought.

www.retail-week.com

ANALYSISTHE PERFECT BOARD

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THE IT DIRECTOR"Good ones pay closeattention to detail andcan rapidly exploit new

emerging online technologies and channels.The outstanding ones are in demand fromother sectors, so invest in developingcapability in this function," Katie Thomas,Russell Reynolds.Some key responsibilities Strategictechnology investment, overseeingtech projects so they are on time andwithin budget.Some leadership attributes They might talk adifferent language among themselves, but ITdirectors must have outstanding communi-cation skills to translate tech-speak toeveryone else. They must be driven by detailand be able to think creatively about newand cost-effective ways to employtechnology for business improvement.What should keep them awake at night?Aside from securing budgets for newprojects, the prospect of a systembreakdown is every IT director's worstnightmare.

THE SUPPLY CHAINDIRECTOR"You need someone who'svery tough, very strong and

very bright and very experienced. They will belike gold dust going forward," MoiraBenigson, MBS Group.Some key responsibilities An intricateoverview of the end-to-end supplychain,from demand planning to management ofthird-party logistics providers. Ensuringstrong supplier relationships and ethicaltrade is also essential.Some leadership attributes The best mustmake complex decisions quickly, cope withextreme pressure, be politically skilled andmanage the utterly unexpected so it has noimpact on customers.What should keep them awake at night?Countless things; gaps on shelves,misjudged forecasting, unethical supplierworking practices among others. The bestconstantly assess ways to improve efficiencyand counter ever-rising costs.

THE MARKETINGDIRECTOR"They need a first-classconsumer understanding and

be able translate consumer opinion intobusiness strategy," Steve Baggi, Green ParkInterim and Executive ResourcingSome key responsibilities Owns and developsbrand strategy, and harnesses customerinsight to develop marketing objectives.They need a thorough grip on the retailer'sinternational activity as well as the impact ofecommerce and social commerce on theirbrand message.Some leadership attributes Those at the top

"IN TOUGHTRADINGYOU HAVE ANOPPORTUNITYTO MAKE SOMEINTERESTINGCHANGES. IT'SA GOOD TIMETO REASSESS"Moira Benigson, MBS Group

WHAT TYPE OF BOARD MEMBER ARE YOU?

Getting a board right isn't just about skills but personalities too. Leadership consultancyTyler Mangan developed a list of personality types every board should have. DirectorJana Klimecki says: "They can be occupied by any board member, but sometimes you'llfind you have three people with a certain skillset and none with another."

The Integrator Ensures the top teamworks effectively and collaboratively,establishing clear roles and responsibilitiesThe Checker Ensures transparency,probes issues and facts to minimise riskThe Business Processor Ensures theorganisation establishes clear andeffective processes to govern itselfThe Operator Gets the job done. Highlyexperienced in handling the day-to-dayoperations and has a firm short- tomedium-term focus to ensuremilestones are met

The Innovator Takes a long-termapproach to developing new products andpropositions. The team's critical mindThe Seller Expert business developerwith good customer management skills.Ensures resources and structures arein place to market products/serviceseffectivelyThe Strategic Visionary Takes along-term approach to business building.Has good understanding of the externalmarket and is skilled at creating andcapitalising on opportunities

have an innate ability to get inside theircustomer's head, inspire others, are creativeand receptive to ideas. They are businesssavvy and can relate marketing activity tocommercial strategy.What should keep them awake at night?What will tomorrow's customer want?How will they shop? Predicting trends is vital;the best marketing directors are innovative,not just responsive.

THE OPERATIONSDIRECTOR"The best operationsdirectors are those who work

closely with their fellow directors to ensurethe whole customer proposition in terms ofenvironment, product and service iscoherent and of the highest quality," SallyMoulsdale, Directorbank.Some key responsibilities Driving storeperformance, creating a performance cultureand gaining board support for the storesagenda.Some leadership attributes A competitivestreak - they need a drive for resultswhile being approachable, inspirational,and personable. They must be goodanalysts to assess real reasons forstore underperformance.What should keep them awake at night?Store performance is an obsession.Generating sales, ensuring top customerservice, improving underperformance andbringing about a motivated store workforceare all challenges.

THE ECOMMERCEDIRECTOR"A great leader who istech-oriented and has an

understanding of consumers. Hard to find

- it's a limited talent pool," Sally Elliott, KornFerry Whitehead Mann.Some key responsibilities Developing anddelivering ecommerce business strategy,managing the profit and loss, managing theinterface between ecommerce and the restof the businessSome leadership attributes A great one ismore than just process-driven. They are bothtechnical and creative, and understand howtheir role relates to business strategy. Giventhe relative newness of the role they mustbe top self-developers.What should keep them awake at night?Improving conversion rates, driving onlinetraffic while avoiding website crashes. Theyneed to constantly innovate to meet onlineshoppers' ever-evolving needs.

THE TRADINGDIRECTOR"They can have a huge andfast impact on a retail

business - it's vital this impact reflects anddefines the retail brand and its identity,"Sally Moulsdale, Directorbank.Some key responsibilities Shifting the bestpossible product, focusing on rangedevelopment, product and pricing strategy.Good management of supplier relationshipsis crucial.Some leadership attributes The top tier hasan instinctive product knowledge that provesinspirational to colleagues. They must havetop negotiation skills, strong sourcing ethicsand build teams that share their productinstinct.What should keep them awake at night?Piles of untouched product are a tradingdirector's worst nightmare. Driving marginand getting the right product for the rightprice are other top concerns.

34 Retail Week January 28,2011 www.retail-week.com

WHAT TYPE OF BOARD MEMBER ARE YOU?

Getting a board right isn't just about skills but personalities too. Leadership consultancyTyler Mangan developed a list of personality types every board should have. DirectorJana Klimecki says: "They can be occupied by any board member, but sometimes you'llfind you have three people with a certain skillset and none with another."

The Integrator Ensures the top teamworks effectively and collaboratively,establishing clear roles and responsibilitiesHie Checker Ensures transparency,probes issues and facts to minimise riskThe Business Processor Ensures theorganisation establishes clear andeffective processes to govern itselfThe Operator Gets the job done. Highlyexperienced in handling the day-to-dayoperations and has a firm short-tomedium-term focus to ensuremilestones are met

The Innovator Takes a long-termapproach to developing new products andpropositions. The team's critical mindThe Seller Expert business developerwith good customer management skills.Ensures resources and structures arein place to market products/serviceseffectivelyThe Strategic Visionary Takes along-term approach to business building.Has good understanding of the externalmarket and is skilled at creating andcapitalising on opportunities