Expanding into global markets represents substantial opportunities — and not insignificant risks. Whether investment abroad currently figures prominently in a company’s strategy or it is being seriously contemplated, it is crucial to mitigate the risks and increase the odds of success. An important place to start is by assessing alignment between the array of skills, talent, and experience seated around the boardroom table, and the global aspirations of the company.

Companies that do engage in this self-reflection often conclude that the international bench strength of their board is woefully lacking. They understand that as the world grows ever more global and more complicated, U.S. companies going abroad require access to local knowledge and local relationships. Directors who can provide this kind of input to a board are a source of huge value to companies seeking to internationalize their business. 

While boards might recognize the necessity of augmenting their board with such resources, they often do not know how to find and attract them. This challenging task is made more difficult by the critical role of personal fit in successful board appointments. As boards have grown smaller and less clubby over the last couple of decades, directors increasingly are counted on to contribute their perspectives, judgment, and expertise to boardroom conversations and decision making in an atmosphere that requires higher levels of trust and personal engagement.

Finding an individual from another country and culture, and often another language, who clears the personal fit and trust hurdle, is considerably more complicated than making a local appointment. This is particularly true when one considers the impact on the group dynamic. A board is ultimately a team that must tolerate differences of opinion and perspective to arrive at the best solutions. To achieve this, mutual respect, a high comfort level, and confidentiality are paramount, but need not be achieved at the cost of diversity.

Boards seeking to add international directors will need the assistance of an advisor who understands these sensitivities. The advisor must be able to bridge the cultural divide between the board and a prospective candidate. This requires cultural insight and sensitivity that is born of extensive, long-term local business involvement combined with a finely tuned international perspective. This will ensure that the advisor has the judgment required to evaluate candidates from within the local business environment, to anticipate potential but unseen conflicts with some candidates, and to determine who will be a good fit for a board, particularly in terms of business knowledge, relationships, values, and personal style.

But insight into what is required for the success of an international board appointment is of little use if it is not paired with the advisor’s access to the best possible candidates. To gain access, the advisor must be viewed as credible and trusted in the local business community. Only advisors who have “earned their stripes” locally will be able to engage and convince the most highly soughtafter candidates. In many environments, like China and India, where preferred candidates are regularly being approached, this is particularly critical. The likelihood of a candidate seriously considering an international board appointment will, to a large extent, depend on who puts the proposition to him or her and how it is presented. 

The importance of retaining an advisor with access to the right candidates when making such an appointment cannot be overstated. In the U.S., a board appointment is considered the capstone to a successful executive’s career, a signal to the rest of society of one’s achievements and status. For Chinese executives, by contrast, the prospect of board service is not necessarily compelling or something they aspire to. They are more likely to be interested in board service to enhance their “guanxi” (business connections) rather than status, and an appeal to such candidates on the basis of service might fall on deaf ears. Understanding what will motivate a particular executive — and presenting a board opportunity in that context — can be the key step in the process.

With fewer directors but more at stake, each seat on a board represents great potential value to the effectiveness of the entire board as it executes its core responsibilities on behalf of the company. This is why it is now so important for board appointments to be guided by an objective and systematic director selection process. This is particularly the case when making international board appointments. As a key partner in that process, the right advisor contributes both insight and access to the best candidates in a particular international business community. The right advisor makes it possible to navigate potential cultural sensitivities seamlessly and to identify as well as attract directors who will help American companies maximize their global opportunities.

This article is part of the Global Board Index by Egon Zehnder International. The complete study can be found at www.egonzehnder.com/global-board-index.