The core of this transformation is board composition. Boards are taking steps to become more independent, spurred by both investor pressure and new legal frameworks like the Sarbanes-Oxley Act and revised listing standards at major stock exchanges. At the same time, sitting board directors face greater responsibilities, time commitments and personal liability, and many are limiting the number of boards on which they serve. By one estimate, 15% of sitting directors of U.S. public companies will relinquish their seats over the next year – three times the normal turnover rate.

To recruit new independent directors, corporate boards will need to look beyond conventional sources. Yet simply finding greater numbers of independent candidates is not enough. Boards want highly qualified individuals with the experience and skills to make a contribution to the company and an ability to make the board itself more effective. Finding well-qualified independent directors with the right combination of interpersonal skills, relevant expertise and leadership qualities is a critical task that requires a specialized approach.