Interview questions Interview questions Sample interview questions for use by chairs and directors when interviewing prospective candidates for boards. The intention behind these questions is to seek a degree of rigour in responses from the candidate in a productive and collegial environment. Questions are divided into two sections: • Highly recommended: sample questions relating to core competencies of directors such as experience, strategic capability and the role of the director. • Discretionary: sample questions that may be incorporated as appropriate. Interviewers should be aware that these questions are not exhaustive. Questions relating more specifically to the entity and identified needs of the board should be considered. This guide should form the core of an interview process, which might include other aspects such as empirical behavioural testing or observational approaches such as social activities. Introduction At the outset of the interview, the interviewer(s) should: • introduce themselves • give a brief overview of the role in question • set expectations for conduct • advise approximate length of interview • indicate these are a mix of behavioural and experiential questions. The interviewer(s) should indicate that they wish to find out more about the applicant’s knowledge and experience. Ideally, questions should be welcome at any time. This document is not to be reprinted without written permission of the IoD Copyright © 2012 IoD Section One – Highly recommended Question Outcome being sought Can you tell us about the motivation for applying for a directorship? What attracted you at this point in your career? Commitment to directorship as a profession; understanding of the role of a director. A good understanding of the role of the organisation. A reasonable and professional rationale for seeking the directorship at this time in his or her career. Notes Question Outcome being sought What are the two most difficult governance challenges you have faced in your career and how did you handle them? Experience of the practical side of governance, the problems that are encountered and how they were overcome. Examples will be a guide to the depth of experience. Notes Question Outcome being sought A directorship often requires varying time commitments particularly if the board enters a busy phase such as a merger or crises. With reference to time management, what are your current commitments? Illustration to the board of current priorities and availability. Will give the interviewer(s) an idea of the capacity of the candidate. May provide some evidence of ability to manage time. Notes This document is not to be reprinted without written permission of the IoD Copyright © 2012 IoD Question Outcome being sought What is your level of knowledge with respect to the legislation that governs a board such as ours? Demonstrates a sound knowledge of the policies, legislation and practices that govern directorship and the organisation. Notes Question Outcome being sought How do you evaluate success on a board? Supplementary: This question can be directed at i) directors as individuals and/or ii) boards. Understands and supports evaluation processes. Acknowledges and accepts importance of performance measurement. Establishes, monitors and enforces high quality standards. Notes Question Outcome being sought What is the role of a board in strategy implementation and how should a board measure the success of a strategy? Knows what best practice says about the critical role the board plays in strategy, but also knows that there is more than one model and has thought about the issue; knows that strategy requires monitoring and regular discussion. Notes This document is not to be reprinted without written permission of the IoD Copyright © 2012 IoD Question Outcome being sought Describe the development and implementation of a successful strategy in the past. Candidate should comment on objectives/visions, strategic plan, evaluations. Demonstrates understanding of the strategy aspect of the board. Can distinguish the strategic role of the director from the operational role of management. Notes Question Outcome being sought What is your understanding of the strategic issues currently facing the board in the environment it operates in? Is able to clearly discern and articulate the relevant issues, and is able to communicate the impact of board activity and decisions. Understands the environment the entity operates in. Note: the candidate may not have an inside view of the entity. Responses may involve a degree of supposition. Demonstrates a strong understanding of current and emerging issues. Notes This document is not to be reprinted without written permission of the IoD Copyright © 2012 IoD Question Outcome being sought Outline how you would go about being an ambassador for [organisation] in the wider public fora? The role of a director is a board role but also a publicly facing representative for the entity. The response should demonstrate the candidate has awareness he or she will be publicly associated and representative of the entity. Notes Question Outcome being sought What education and/or work experience do you have that will benefit you as a board member? Requires candidate to offer a relevant background to the role. Candidate should ideally link the experience to the role, and this may be sought by interviewer. Note that education for directors is broad. Skills developed from other sectors and experiences may be transferable/compatible. Notes This document is not to be reprinted without written permission of the IoD Copyright © 2012 IoD Question Outcome being sought Describe the ethical expectations of a director and the ethical context a director operates within. Supplementary: Have you found yourself in an ethical dilemma or conflict where you felt you had to apply ethical principles? Supplementary: What are fiduciary duties? An effective board must have a solid ethical base as part of a strong governance culture. Unethical behaviour ultimately damages companies and their personnel. The responses should give a clear and unambiguous understanding of ethics and the role it plays at board level. Notes Question Outcome being sought A director needs to demonstrate financial literacy in his or her role. Court cases have underlined the importance of financial literacy for directors. The information being sought here is selfevident. Boards of today would expect financial literacy to the level of a reasonably prudent director. Can you provide evidence that you have a degree of comfort and capability with financial documents (eg statements of financial position?) Some candidates may be highly attractive but require further training to ensure they have a strong grasp on the financial side of being a director. Supplementary: Would you be prepared to undertake a course to ensure financial literacy is up to date? Supplementary: What would your response be if a financial matter came to your attention that you either did not understand, or caused concern? Notes This document is not to be reprinted without written permission of the IoD Copyright © 2012 IoD Question Outcome being sought What questions do you have for the board? Notes Section one assessment and notes Notes This document is not to be reprinted without written permission of the IoD Copyright © 2012 IoD Section Two – Discretionary (select questions as required) Question Outcome being sought Should committees make final decisions or recommendations to the board? Knows the general rule is that committees make recommendations, but there can be occasions on which a specific decision may be delegated. Notes Question Outcome being sought What do you think are some of the major challenges facing directors today? Thinks about the profession, considers the impact of issues and events, knows that the issues are not black and white (gives examples such as disclosures under prospectuses, recent court actions, etc.), knows directors’ responsibilities. Notes Question Outcome being sought What are the recent developments in business that you think are relevant to a board and directors? Question that can be employed to understand the depth of the candidate’s wider knowledge of directorship and current issues. Notes This document is not to be reprinted without written permission of the IoD Copyright © 2012 IoD Question Outcome being sought Can you tell us about an important mentor in your own life, and the difference they have made to your success? This question seeks to rely on experiential feedback from the candidate. It demonstrates relationship building and wisdom, but moreover the capacity to learn from others. Notes Question Outcome being sought Tell us about your most useful or memorable experiences as a director and what you learned from them. Has interest in director profession and builds on experience, knows strengths and addresses weaknesses, seeks new experiences. Notes Question Outcome being sought Have you ever had the experience of a dysfunctional board (eg where there were breakdowns in relationships between board members or board and management)? What did you learn from that? Understands the need for positive board culture, open debate, role clarity, getting to decisions and sticking to them outside the boardroom. Notes This document is not to be reprinted without written permission of the IoD Copyright © 2012 IoD Question Outcome being sought If you were an appointee of a major shareholder on a board and they expected you to support a particular position, but you felt that it was not in the company’s best interests, what would you do? Understands how to handle conflicts of interest and can act honestly in the best interests of the company, displays independence of mind, but aware this can be allowed for, eg in joint ventures. Notes Question Outcome being sought What in your view is the role of board evaluation and what is the best way to go about it? Candidate should consider evaluation vital and knows the process needs to be led by the chair and fully supported by the board. Candidate is prepared to include management in evaluation and demonstrates a personal interest in learning and improving in key areas. Notes This document is not to be reprinted without written permission of the IoD Copyright © 2012 IoD Question Outcome being sought How should conflict on the board be approached? This is a broad and searching question, asking the candidates understanding of conflict and the proper processes around it. Good answers will acknowledge the inevitability (and even health) of conflict and reflect back knowledge of healthy boardroom practice and demonstrated capability in this area. Interviewers might find the question a useful entree into further questioning on conflicts of interest. Notes Question Outcome being sought Describe a situation of pressure or conflict where you were part of the team or board, mandated to provide solutions. Explore the candidates capability to deal with crisis or high pressure situations May be framed as a “What would you do?” example. Notes This document is not to be reprinted without written permission of the IoD Copyright © 2012 IoD Question Outcome being sought Are you a member of the Institute of Directors or other relevant body that supports your continuing education as a director? This question supports other enquiry as to the extent of the candidate’s involvement with the director world and beyond. It requires a candidate to evidence real commitment to the directorship by immersing him or herself in wider issues and education. Professional membership of relevant kinds evinces a degree of commitment and dedication. Notes Question Outcome being sought How would you characterise the importance of having soft skills in the boardroom such as emotional or behavioural intelligence as a director? Candidate recognises that soft skills are important in the board setting. Supplementary: How do you characterise your own degree of emotional or behavioural intelligence? This question will produce a degree of recognition of the role of emotional or behavioural intelligence but will not illustrate emotional intelligence per se. Notes Question Outcome being sought What role does self-reflection play in the role of the director? Candidate recognises the importance of selfreflection as part of directorship and continuous improvement. Notes This document is not to be reprinted without written permission of the IoD Copyright © 2012 IoD Question Outcome being sought How would you characterise your personal style? Supplementary: Can you support this with relevant boardroom examples? Evidences self-knowledge. Notes Question Outcome being sought Board culture is a key contributor to a wellfunctioning board. Acknowledges the importance of good board culture. What do you think the key contributors to a good culture are? In a holistic sense, the candidate demonstrates recognition of the balance that a board member is part of a team, but also exercises robust independent thought. Notes Section two assessment and notes Notes Signed ________________________________ This document is not to be reprinted without written permission of the IoD Copyright © 2012 IoD Section Three – Other questions Other questions may be based on the following. 1. Steps taken to be knowledgeable about the organisation itself. Character and competency. The interviewer (s) should be seeking positive signs of the following qualities. Is proactive and diligent. Notes 2. Understanding of value drivers. Has insight into the few things that have to be got right to make organisations successful; keeps abreast of company and industry developments and challenges. Notes 3. Contribution to strategy. Understands strategic role of board. Notes 4. Major achievements as a director. Adds value; makes a difference. Notes 5. Development of board and management capability. Understands issues of refreshment and succession. Notes 6. Handling of conflicts of interest. Shows understanding of need to declare etc. Notes 7. Making a stand on an issue at the board table. Thinks independently, stands ground, but can move on. Notes This document is not to be reprinted without written permission of the IoD Copyright © 2012 IoD Other questions may be based on the following. Character and competency. The interviewer (s) should be seeking positive signs of the following qualities. 8. Communication style. Contributes and listens. Notes 9. Role of a director vs manager. Understands division of roles, but also grey areas. Notes 10. Monitoring of management performance. Understands need to challenge, measure and support. Notes 11. Contribution to risk management and compliance. Recognises importance of risk and compliance. Notes 12. Knowledge of financial affairs. Understands financial issues and is able to contribute. Notes 13. How a board meeting should be controlled. Familiar with agenda setting, papers, minutes. Notes 14. How to keep governance knowledge up to date. Undertakes training, reads widely, attends events. Notes This document is not to be reprinted without written permission of the IoD Copyright © 2012 IoD Key competencies for non-executive directors – from the IoD’s The Four Pillars of Governance Best Practice. General competencies Business judgement The ability and intelligence to make astute business decisions and recommendations based on reasonable assumptions and factual information, including the ability to deal with uncertainty, risk, incomplete information and complexity, both in the present and reaching out several years. Entrepreneurial The talent to contribute to the creation – not merely the preservation – of shareholder value. Perspective or vision The ability to see the wider picture, future opportunities and risks, and the possible implications and impact of these. Integrity High ethical standards and integrity in all personal and business dealings. Commonsense Sound practical sense in everyday matters. Personal skills and traits A capable communicator and a personal style which does not detract from a board culture of capability, candour, trust and professionalism. Extra organisational awareness An understanding of the position of the company in its market in relation to its competitors, the nature and impact of its shareholders and other stakeholders, and the strategic advantages which may influence opportunities and threats. Governance The ability to distinguish between issues and actions of governance as distinct from management and to not directly be involved in management matters. Compatibility and prioritisation The ability to ensure that strategies, budgets and business plans are compatible with the company’s vision and mission and, in monitoring performance, to identify and focus on those issues that are of significance to the company. Strategic competencies Organisational awareness The ability to see the overall strengths and weaknesses of the company, the manner in which they are driven and the impact of the board’s decisions and other influences upon them. Change awareness The ability to be alert and responsive to the need for change, to encourage new initiatives and to implement new policies, structures and practices. This document is not to be reprinted without written permission of the IoD Copyright © 2012 IoD Analytical competencies Financial literacy The ability to interpret financial statements and statistical information, and to understand the use of financial ratios and other indices for evaluating company performance, and to recognise their significance, quality and timeliness. Critical faculty The ability to probe the facts, challenge assumptions, identify the advantages or drawbacks of proposals, provide counterarguments and ensure discussions are penetrating and constructive. Information-oriented The confidence to ask for information on matters of significance and relevance and ensure it is available to enable informed judgements/ assessments to be made. Honesty and accountability Truthfulness and trustworthiness, without compromise of moral principle, and willingness to act on and remain accountable for board decisions. Commitment The energy, commitment and motivation for the time and contribution necessary to properly meet the board’s requirements and discharge its responsibilities. Courage The strength of character and boldness to pursue one’s own convictions, and to probe, penetrate and achieve full understanding, in the face of adversity. Objectivity Independence from company management and any business or other relationship that could materially interfere with the exercise of independent judgement. Conflicts of interest The acumen to identify and declare conflicts of interest on any issue coming before the board. Character competencies Communication/interaction competencies Communication The ability to articulate opinions, rationales and points clearly, logically and concisely, and participate in board discussions with courtesy, respect and a sense of humour. Adaptability The ability to adopt a flexible approach in team interaction and to alter stances when appropriate. Listening The ability to listen impartially, not be selective, and recall and take into account key points. Teamwork The ability to work harmoniously within a group, to recognise and value the contributions of other board members in a diplomatic manner, and to support and accept majority board decisions. This document is not to be reprinted without written permission of the IoD Copyright © 2012 IoD Knowledge and operational competencies Director responsibilities An understanding of the regulatory, legal, fiduciary and ethical requirements affecting directors. Business management practices Familiarity with up-to date business management techniques and related ethics. Business environment Awareness of major external influences on the general company and commercial environment including political, economic, social and technological issues. Board structure An understanding of the roles, processes and relationships of the board and its members. Performance appraisal An understanding of the key performance indicators of the company and its CEO and of the board itself. Financial An understanding of legal and accounting financial reporting standards and of accounting principles and practice. Marketing An understanding of marketing techniques and practices. Information technology An understanding of the use of systems for storing, retrieving and transferring information. Special knowledge Awareness of any special strategic/industry/cultural or other issues that may impact on the particular business of the company. This document is not to be reprinted without written permission of the IoD Copyright © 2012 IoD
