A Board of Directors for a business reflects some form of governance structure. Therefore, young businesses must understand that a dynamic Board of Directors will add a huge strategic value if the members are a combination of experience, competence, personality and network.
This course is about how to put together and manage such a board for the future prosperity of the business, particularly when the members have high level, probably unquantifiable, chemistry; the bonds among them that are strong; and they are members who appreciate the complexity of the business they oversee.
Selection of such board members will involve evaluation of such dimensions as each person’s understanding and development of strategy, membership composition, their access to information, as well as levels of personal candor and energy. Interpersonal styles, individuals’ preparedness and availability, and the directors’ initiative and links to critical stakeholders are additional relevant considerations. This training guides everyone who will be part of the selection and management.
A board that will truly fulfill its mission will monitor performance, advice the CEO - in fact it is to be the boss for the CEO - and provide connections with the shareholders and the broader world while holding themselves and the company accountable at all times.
This course will clarify all these.
- Appointing a Board of Directors
- Be sure of the expertise you are looking for
- Consider the personal value the member is to bring
- Ensure shared vision for the business
- Age does matter - a combination of experience and dynamism
- Size does matter - odd number in the case of a tie at voting
- Seek a long list of candidates to filter from
- Take the time to get it right - months not weeks.
- Characteristics of a Forward-Looking Board Member
- Pre-existing passion for the cause
- Eagerness to participate at every meeting – prepared
- Willingness to prepare ahead for meetings
- Ability and propensity to give above average sacrifices
- Desire for stewardship to shareholders
- Supportive, but assertive to express own opinion
- Strives to learn as much as possible.
- Accepted Standards for Board Operations
- Members show up for meetings promptly, prepared
- Financially literate Audit Committees
- Compensation committee
- Codes of ethics
- CEO trusts the board enough to share information
- An uneven number prevents tie votes.
- Functions for the Board
- Ratification of key strategic decisions
- Reviewing financial and operational performance
- Dealing with extraordinary events, e.g., crisis
- Providing network effects.
- Board Meetings
- Choose date early
- Prepare board pack promptly
- Distribute board pack in enough time for members to study
- Define and focus on top three strategic topics
- What Future-Ready Directors Need
- Enough information to make an informed decision
- What’s the bottom line
- Best/worst case scenario
- Observed risks and their mitigation.
- Pattern of Competence on a Board
- The directors perpetually alert, vigilant, involved
- Checkmate corrupt management team
- Checkmate gross or criminal negligence
- Effectively independence
- Directors are intelligent, accomplished, comfortable with power
- No meddling in day-to-day operations