tcn on air: everything you were told about how to build a board was wrong
DESCRIPTION
Your Board is one of the most valuable parts of your company. They help you steer, make decisions, and could get you that first investment. Or they can push you off a cliff, vote incorrectly, and cost you your company. We will help you get to Plan A. The revered Professor Les Charm will talk you through how to know who to put on (and keep off) of your Boards, and much more. Expert - Les Charm, Babson UniversityTRANSCRIPT
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BOARDS AND HOW TO MAKE THEM BETTER!!!!!!!!
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WE NEED TO BE CLEAR
Public, private, family owned, venture-backed, etc?
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In my belief, they are fundamentally different!!!!!!
And the answers to many of the questions I would ask, would be different for each.
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ADVANTAGES
1.
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DISADVANTAGES
1.
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THINGS TO WATCH OUT FOR
1.
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Is the board meeting or the dinner the night before?
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Why Build a High-Impact Board?
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Sounding Board
For you and your senior managers, helping you set your company’s top strategic goals and challenges and advise management about execution
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Forum
For problem solving and management support
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Source
Of critical market and operational expertise
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Resource for Identifying
Recruiting, and onboarding top managerial talent
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Resource for Networking
With the key people outside your company who can help your company succeed
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Bad board dynamics result
when:
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Bad…….
1. The board is set up for “control” or other “non-impact” purposes.
2. Board members are not committed to spending the appropriate time and energy to participate and be helpful.
3. One or more board members monopolizes the board discussion.
4. Board members are not aware of or not held accountable for what’s expected of them.
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BAD……Part 2
5.There is poor alignment between various board members around the company’s short-and long-term goals and aspirations.
6. The management team does not properly prepare the board to have a meaningful conversation about the company and its markets.
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Charm’s Main points
The more time spent on financial statements, the less the meeting accomplishes
The more the board understands the metrics of prediction, the better the discussion .
Running the meeting is very important
Term Limits are critical
The board needs to be involved in the strategy discussions way earlier than CEO’s allow or think about
If there are outside investors, every meeting can not be a scorecard on the CEO
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Directors
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AGENDA
1. ##### 2. Issues that concern CEO 3. Issues that the board thinks are
important 4. Senior management team rotate
throughout the year 5. Other…….
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What one factor will most influence whether or not a
board succeeds?
creating the board at the right time
other
Having the right mix of management, independent, and investor board members
Having effective board meetings
Having a cohesive board
Having diverse board members with the right skill sets and experience
1%
10%
17%
18%
23%
31%
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Setting Clear Expectations,
Demanding Full Accountability
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Four to eight hours per month for board-related activities and responsibilities
One day per quarter for on-site board meetings
A couple of hours per month to provide ad hoc operational or strategic advice
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Charm’s point of view
For private and family-owned, there are no votes….
whether formal or informal
Major job, help the CEO with what he or she thinks is important at the moment and ( sometimes point out other issues that should be discussed)
Running the meeting is most important along with boards expectations.
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SOURCES: Many, many…….
Many materials written on the subject
Many discussions with experienced CEO’s and Directors