Business after business is hampered, rather than supported, by dysfunctional boards. Board members are picked for all the wrong reasons; because they invested, they are a friend, or someone suggested them as a quality executive. Boards are then created out of balance when it comes to the help needed because there was no plan put in place before the selection process started. Egos become the order of the day, and in the end, businesses end up with boards that don’t add value and spend time in operational detail rather than strategic direction and support.
Boards should serve two main purposes. Primarily, your board should help you, the CEO, make better decisions and grow your business more effectively. Second, they must provide the fiduciary oversight needed to manage risk and support shareholder / stakeholder investments; holding you accountable.
If you are setting up a board for the first time, you must build a plan for what you need, from talent to meeting structure and frequency. When it comes to the members selected, you should staff your board with a balanced set of talent needed to help you grow your business. From marketing to financial or development disciplines, it is critical that you staff your board like you would an executive team. Also essential is to get board talent that has the needed experience in your field of operation. If you build a board with significant experience in your field and a balanced set of professional disciplines, you will have a team that can and will help you succeed. Click here to read more.