Competencies of directors in global firms: Requirements for recruitment and evaluation

Abstract

Using the competency profiling methodology (Boyatzis, 1982; Spencer & Spencer, 1993) in a resource-based theoretical framework (Wernerfelt, 1984; Barney, 1991), we provide a model for the recruitment and selection of board members to lead in global firms. Competency requirements for board members are described in terms of generic as well as specific competencies for their roles and responsibilities in a global firm. In addition, the selection process using assessment centre exercises are provided. Finally, we propose structures and processes for the evaluation of board members to ensure that they continually enhance their competencies in order to manage in a changing, global economy. Such activities include performance measurements of board effectiveness in terms of competency attainment as well as pay-for-competency structures to ensure that boards continually have the necessary competencies to lead in complex global firms.