With calls to improve corporate governance, and establish more professional board practices, boards are devoting more time to identifying the competencies they require for new board members. Competencies frequently cited in relation to the "ideal director" include:

• Experience – Boards seek individuals with: (i) core business experience (e.g., strategic management, finance); (ii) middle management experience in a specific functional area; (iii) general management experience and the ability to oversee a business; and (iv) senior or top management experience proving a mastery of "big picture" issues and leadership talent. The most preferred candidates continue to be sitting or retired CEOs or Presidents. Experience in corporate environments is preferred, and there is growing interest in candidates with international business experience.

• Knowledge – Potential directors must have a sound understanding of: (i) business strategy, business environment, and industry trends; (ii) corporate governance and board operations; (iii) financial accounting and corporate finance; and (iv) contemporary management trends.

• Skills – Depending on the competencies of existing members, boards may seek directors with specific technical skills in marketing, finance, and technology. It is difficult to generalize, however, about the specific types of expertise most in demand. With respect to other skills, boards seek individuals who have: (i) demonstrated leadership ability and the ability to motivate high performance; (ii) strong interpersonal and communication skills; and (iii) an ability to deal with challenging situations.
   

• Attitude/Personality – Directors must also possess: (i) independence of thought and judgment; (ii) high ethical standards in values and behavior; (iii) personal credibility and honesty; and (iv) discretion.