The Strategic Value of College Presidents in the Boardroom

New sources of diverse boardroom talent such as industry specialists and military leaders have become more visible in recent years. Another rich source of talent exists among leaders in academia. Contrary to assumptions about academics sitting in so-called ivory towers, many college and university leaders bring superb business experience and innovation to the boards that they serve.

In addition to their traditional roles and nongovernmental organization engagements, college and university presidents serve on both public and private corporate boards because their experience and skills encompass significant depth in the business of education, much of which is transferable to other industries.

Higher education has a lot of moving parts, including fundraising; recruitment; facilities management; finance and investments; marketing; education as a product and service (e.g., university hospitals and research universities); student services; information technology; human resources; diversity, equity, and inclusion; employees with multifaceted functions; and a governance structure that intentionally shares power and places a focus on environmental, social, and governance issues. Presidents sit atop at least seven or eight operations, even at the smallest institutions, making them valuable additions to corporate boards due to their diverse skill sets and time management abilities.

Furthermore, the following allow higher education presidents to add value to the companies and boards they serve.  

Strategic vision and leadership: University presidents excel in developing, implementing, and leading strategic plans. Working within a shared governance model, they are consensus builders inside and outside of the strategic planning context. They negotiate the best pathways forward that emerge from a variety of ideas, balancing the concepts developed by longtime organizational employees with the fresh thinking of new recruits. These attributes can help guide corporate boards that face dynamic markets and demanding stakeholders, including vocal workforces.

Financial acumen: Responsible for significant budgets and major fundraising efforts, university presidents have a deep understanding of financial analysis, resource allocation, and investment management. This fiscal expertise is invaluable for companies seeking board members with the ability to assess financial health, guide investment strategies, and navigate complex financial decisions.

Governance and risk management skills: University presidents are well-versed in the principles of good governance. National and statewide associations regularly provide them with cutting-edge professional development. They oversee intricate board structures and navigate compliance regulations while balancing competing interests within their own institutions. This experience enables them to advise on board effectiveness, mitigate risk, and protect the organization's reputation. This tends to be particularly true when the president is also an attorney or accountant.

Crisis management experience: As we have seen recently, leading educational institutions involves dealing with unforeseen challenges and public scrutiny, much of which reflects broader geopolitical issues. The wisdom gained from these experiences is transferrable, and these experiences cultivate the composure needed for corporate boards facing difficult situations. College and university presidents are typically adept at thoughtful decision-making under pressure and communicating effectively to restore trust.

Diversity, equity, and inclusion (DE&I) expertise: University presidents often champion DE&I initiatives, overseeing policy development that shapes organizational culture. College presidents are used to spirited discussions and moving adversarial scenarios to dialogues of “creative friction,” where workable, realistic outcomes are an outgrowth of voices being heard.

Community and stakeholder engagement skills: Successful university presidents excel at collaboration with diverse stakeholders, including not only traditional on-campus groups, but also government officials and local communities. They have developed excellent communications skills as a result. This experience translates seamlessly to corporate boards that regularly interact with investors, employees, customers, regulators, and the wider community. This talent also supports the development of senior managers who interface with these parties as well as company lenders and service providers. These board members offer a valuable sounding board and mentorship opportunities to internal leaders.

Global outlook: Many universities have international partnerships, but this is just the tip of the iceberg. College presidents pride themselves on being not only well apprised of global affairs, but actively engaged in them, often as a voice of reason and conscientious direction. They gain sensitivity to global trends and cross-cultural communication, an asset in today's interconnected business world.

Understanding emerging trends: Familiarity with university-level, leading-edge research keeps college presidents at the forefront of technological, social, and economic opportunities. These insights can help boards stay ahead of disruptions and identify innovative pathways. To succeed in their careers, college presidents must demonstrate curiosity and a commitment to lifelong learning, which make them ideal role models in the boardroom and at the companies they serve.

Network access: Due to the many skills and attributes noted above, plus the job requirement of being relationship-oriented, college presidents have significant social networks with access to others who can serve as helpful partners and community builders. These skills can help corporations, shareholders, and stakeholders to collaborate and thrive.

College and university presidents offer astuteness, esteem, experience, and knowledge that enhance a corporate board’s outcomes. Their leadership skills, financial expertise, connections, commitment to inclusivity, and ability to manage complex environments make them ideal board members.

Jonathan Peri, PhD, JD, is the president of Manor College and lead advisory director to the First State Bank of Texas.

Lisa Quateman is a director of AG Mortgage Investment Trust, ITR Concession Co., Lyles Diversified, and the NACD Pacific Southwest Chapter, and serves on the advisory boards of Scherzer International Corp. and the UCLA Ziman Center for Real Estate.