Why Build an Effective Board For Your Company?
... A savvy Board can make all the difference ...
Why Create a Board?
The topic of fostering a proactive and effective Board of Directors or Board of Advisors environment has been a major point of discussion in recent years. I personally believe the reason for this exploding interest in the Board space is bigger than simply government regulations or the follow-on requirements of Sarbanes-Oxley or Dodd-Frank in the public space. Truth is, a large portion of Board topics and discussions have focused in the private and non-profit sectors. Twenty years ago this would have been a shocker as many private business owners would have asked the question, "why should I create a board that could potentially add roadblocks in the form of documentation, requirements, over-structuring, bureaucracy or even red-tape?" A valid question at the time, in my opinion.
Thankfully, the bulk of today's Board perceptions and value-add in the private and non-profit sectors are of a different nature - and for the better. For example, the building of savvy Boards in the private sector are now viewed by some as a company 'getting serious' and having 'arrived to the big leagues.' Want your company to increase its growth? Build a Board. Want your company to create an industry-crushing strategy? Get a Board. Want your company to be viewed seriously for a capital raise? Create a Board. You get the picture.
Interestingly, IBG advocates the formation of a Board at any stage of a business - from the one person startup to the established, mature company. The earlier the better. After all, wouldn't you want the right strategy and support from the onset to ensure you are on the right path from the start? It could save you a lot of time and money! Too many businesses think they need to be established first and then they will attract the right board members later - this is a flawed approach. If your company has detailed its value proposition and strategy along with compelling reasons for experienced Board members to join (i.e. challenge, performance-based compensation, etc.), any company can attract extremely talented Board members.
Most CEOs, business owners and leaders are capable of driving their companies to a certain level, but often become limited by lack of strategy and gaps in long-term planning - the curse of 'working in your business' instead of 'working on your business' strikes once again. This trap can be reversed...
Be sure to keep an eye out for our continuing series on the who, what, when, where and why you need to be thinking about in order to build an effective board for your company. Over the next few weeks, IBG will present a series of articles to help you further understand how a Board as a Service (BaaS) is supremely beneficial to growing your business.
Let's discuss how IBG can have an immediate impact into governing your business. Reach out and let's explore how we can work together to further your company's profitability and insure long-term growth.
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) and also conducts national speaking engagements, lectures and seminars focused on effective leadership, board strategy, professional project management and entrepreneurship.
Join Mark for his 2017 National Speaking Tour topic 'Building an Effective Board For Your Company' as he shows business owners and leaders the immense value of creating an experienced 'go-to' team. Attendees will leave the presentation with newfound knowledge of the importance of creating a Board at any stage of business growth and will feel empowered by the step-by-step roadmap to successfully build and govern their Board. 16 events already booked! Reach out if this topic is right for your event.