Series Volume 3: Why Build an Effective Board For Your Company?

OCT
12
2016
OCT 12, 2016

With our ongoing series 'Why Build an Effective Board For Your Company?,' this article focuses on important Topic #3: What Makes a Great Board?

This question is extremely important - after all, how can you build a great Board without knowing what will make it great? Over years of compiling a simple, yet effective, reminder as we advise, coach and build Boards, the following are our main 'go-to' considerations that you can also use to kick-start your thought process when building a Board or evaluating an existing Board:

Expectations of a Great Board:

  • Remain primarily strategic (90% strategic / 10% tactical seems to be the ideal balance)
  • Keep organization on track to its core Values, Mission and Vision
  • Create a clear and viable strategic company roadmap
  • Leverage knowledge and relationships to further organization

9 Traits of a Great Board:

  • Respectful = Constructive = Effective
  • Passionate about the company Values, Mission and Vision
  • Governance / accountability / results-oriented
  • Proper foundational structure of Board and Sub-Committees
  • Communication, communication, communication!
  • Transparency
  • In-person meetings
  • Wide range of backgrounds, industries and expertise
  • Proper preparation for all Board meetings including:
    • Creation / utilization of a monthly Control Book (typically includes performance metrics, P&L breakdown, cash statement, retention report, growth drivers and other pertinent reports
    • Management Meeting(s) prior to Board Meeting, including Sub-Committees

What will you consider when building or evaluating your Board?

Continue to watch for our ongoing series on the important focus areas you need to be thinking about in order to build an effective board for your company. Also, see the previous newsletters focusing on Topic #1: 'Why Create Your Board?' and Topic #2: 'When to Create Your Board?

Mark A. Pfister
Chairman & CEO
Integral Board Group

About the Author:  In addition to sitting on numerous boards, Mark A. Pfister advises public, private and non-profit boards in efficient and effective operations. He is the inventor of the 'Board as a Service' (BaaS) engagement model and an expert project / program manager frequently consulting on strategic global initiatives in their initiation phases as well as programs that require remedial focus to bring them back on track. Mark holds a Professional Director Certification through the American College of Corporate Directors (ACCD).

Have Mark join you with his 2017 National Speaking Tour 'Building an Effective Board For Your Company' as he shows business owners and leaders the immense value of creating an experienced 'go-to' team.