In my
previous blog “Significance and Functions of a Board of Members” I
discussed the importance of having board members in an enterprise.
Here are
some suggestions to consider while you look for board members for your company:
Prefer
Quality over Quantity
Ability and
skills always score over numbers at the board level. Prefer experience and
expertise when it comes to choosing board members.
For
privately-held start-up enterprises, the number of nominated candidates should
range between 3 and 7. Entrepreneurs can reserve one or two seats for investors
if they are looking to raise equity from venture capital funds or from private
investors.
Seek
balanced board experience
Make sure
you have a perfect blend of multiple talents and skills when it comes to
picking directors for your company. You should prefer individuals with a wide
range of specializations – finance, product development, sales, business continuity
and employee engagement marketing etc.
It is
always advantageous to have board members who have served in one or more
for-profit boards.
Hire
legal help as needed
It is
helpful to have corporate lawyers on board who can attend board meetings as acting
secretaries or non-voting corporate counsel.
Get
aligned
Make sure
all the nominated candidates are aware of company’s business goals, financing
objectives, product development priorities and distribution strategies. A
candid discussion can help ensure that all nominated members are on the same
page and do not have any issues pertaining to the policies of the enterprise.
Use ‘em
or lose ‘em.
It’s the
founding entrepreneur who can utilize each board member’s skills and
specialization to the maximum effect. When great business brains join a board,
they need freedom of thought and action to put their knowledge to maximum use.
Let them
explore their productive ideas for the growth of company albeit things should
never go beyond your own vision and control.
New
businesses need experienced advisers
It is a
mandate for new business and small businesses to have astute business advisers
as their board members. Their experience and sharp business acumen will play a
vital role in improving company’s operating direction.
Corporate
Executive Coaching
Corporate Executive Coaching at a CEO club helps you identify your needs when form a
Board of Members. As you get to meet different experienced and knowledgeable
leaders at CEO associations, you can get insight into basics of nominating and
electing eligible board members. Join a
reputed CEO peer group especially if you are starting-up a new business and
need practical tips on how to build a performing, useful Board of Directors.
